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COMMERCIAL 
RUSSIA. 


BY 

WILLIAM  HENRY  BEABLE 


WITH  A  MAP 


NEW   YORK 
THE    MAGMILLAN    COMPANY 

1919 


^(.-^ 


Printed  in  Great  Britain 


•  ••  •  •     • 


TO 

SIR  FRANCIS  H.  BARKER 

IN  APPRECIATION 

OF  HIS  ASSISTANCE  IN  MY  EFFORTS 

TO  FURTHER    FRIENDLY   COMMERCIAL    RELATIONS 

BETWEEN  THE  UNITED  KINGDOM  AND  RUSSIA 


CONTENTS 

CHAFTBR  PAGE 

I.  Introduction 1 

II.  Travelling  in  Russia      .         .         .         .         .         .16 

III.  The  Country/. 32 

IV.  The  Language 42 

V.  The  People .49 

VI.  The  Big  Cities 59 

VII.  Tee  Smaller  Towns 71 

VIII.  The  Question  of  Credit  and  Law       ,   .         .         .76 

IX.  Agents 92 

X.  Government  and  Official  Buyers  .         .         .     101 

XI.  The  Ports  and  Shipping 115 

XII.  The  Baltic  Provinces  and  Poland         .         .         .123 

XIII.  The  Ural  Mountains  and  Ekaterinburg        .        .133 

XIV.  Finland 138 

XV.  Siberia 145 

XVI.  Agricultural  Machinery,  Chemicals  and  General 

Merchandise 161 

XVII.  Textiles  and  Textile  Machinery  ....  189 

XVIII.  Trading  in  Russia  .         .         .         .         .         .  '201 

XIX.  Boots,  Shoes  and  Leather 207 

XX.  Motor  Cars 213 

XXI.  Machinery,  Electrical  and  Engineering        .         .  223 

XXI  I.  Iron  and  Coal  :  Russia's  Natural  Resources        .  242 

Appendix         .         . 264 

Index     .         . 275 


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COMMEKCIAL  EUSSIA 


INTRODUCTION 

Two  trips  to  Russia — Changes  in  recent  years — Demands  created  by 
municipal  developments  —  Improvement  of  domestic  requirements — 
Germany's  former  advantage — Factors  militating  against  Germany — 
Sympathy  rather  than  exploitation — America  and  Japan — Demand  for 
high-class  goods — Britain's  possibilities  in  Russia— Catalogues — The 
rouble  and  the  exchange — Early  investigation  necessary — The  com- 
mercial war. 

IN  the  early  part  of  1916  the  writer  organized  the  Anglo - 
Eussian  Trade  Comnxission  for  the  purpose  of  investi- 
gating on  the  spot  the  possibiUties  of  British  manufacturers 
in  Eussia,  the  best  methods  to  be  employed  for  securing 
trade  after  the  war,  and  as  far  as  possible  putting  those 
represented  into  communication  with  rehable  agents  and 
responsible  buyers. 

Sufficient  support  having  been  given  to  the  enterprise, 
he  proceeded  to  Eussia  in  April,  and  spent  six  months  in 
that  country.  He  soon  found  that  in  order  to  fully  appre- 
ciate the  conditions  and  possibilities  of  business,  it  was 
necessary  to  cover  the  country  very  thoroughly,  and  not 
to  confine  his  investigations  to  the  larger  cities,  such  as 
Petrograd,  Moscow  and  Odessa.  In  addition  to  these, 
he  therefore  visited  Archangel  in  the  North,  the  other 
towns  of  the  Black  Sea,  Nikolaiev  and  Kherson,  the  im- 
portant district  of  the  Sea  of  Azov,  including  Eostov-on- 
Don,  Taganrog  and  Novocherissk,  Baku  and  Tiflis  in  the 


2  COifllEECIAL  RUSSIA 

lower:  6ia<Jasus;; all  itlie  principal  towns  on  the  Volga,  in- 
cluding the  Fair  at  Nijni-Novgorod  ;  Omsk,  the  principal 
town  in  Siberia,  Ekaterinburg  and  the  mining  district  of 
the  Urals,  and  several  other  towns,  such  as  Kiev,  Kharkov, 
Vologda,  Viatka,  Kursk,  Tula,  Perm,  in  some  of  which  the 
EngUsh  language  is  seldom,  if  ever,  heard. 

Through  the  good  offices  of  Mr.  Runciman,  then  Presi- 
dent of  the  Board  of  Trade,  the  Foreign  Office  instructed 
its  Diplomatic  and  Consular  representatives  in  Russia  to 
give  him  all  the  help  possible,  and  Baron  Heyking,  then 
Russian  Consul-General  in  London,  provided  him  with  an 
open  letter  of  introduction  that  proved  invaluable  in  his 
investigations. 

Mr.  Henry  Cooke,  the  Commercial  Attache  at  the 
British  Embassy  at  Petrograd,  a  man  whose  previous 
consular  experience  and  extensive  travels  in  Russia  enable 
him  to  speak  with  authority,  enthusiastically  received  my 
mission  as  a  step  in  the  right  direction,  and,  notwith- 
standing the  meagre  limits  of  office  accommodation  and 
clerical  assistance,  cheerfully  placed  his  wealth  of  know- 
ledge at  my  disposal  and  devoted  considerable  time  in 
assisting  me,  not  only  in  making  my  investigations,  but 
also  in  gathering  material  for  this  book.  Some  at  least 
of  the  Consuls  and  Vice-Consuls  also  rendered  valuable 
assistance,  and  I  especially  acknowledge  that  given  by 
Mr.  Caruana  at  Kherson,  Mr.  Macdonnell  at  Baku,  Mr. 
Bagge  at  Odessa,  Mr.  Randrup  at  Omsk,  Mr.  Preston  at 
Ekaterinburg  and  Mr.  Negroponte  at  Rostov-on-Don. 

But  perhaps  the  most  valuable  information  obtained 
was  from  Russian  manufacturers,  merchants,  agents,  and 
more  especially  from  the  shopkeepers,  not  only  in  the 
larger  cities,  but  in  the  smaller  towns,  such  as  Vologda, 
Viatka,  Samara,  Ekaterinburg,  Ekaterinoslav,  Tsaritzin, 
Astrakhan,  etc.,  etc.,  from  which  one  got  a  point  of  view 
not  always  obtainable  in  such  places  as  Petrograd,  Mos- 


INTRODUCTION  3 

cow  and  Odessa.  All  this  information  was  supplemented 
by  interviews  with  Prince  Lvov,  who  "kindly  invited  me 
to,  and  entertained  me  at,  his  home  in  Streylna,  with 
General  Dashkov  and  others  interested  in  promoting 
business  relations  between  Great  Britain  and  Russia,  with 
leading  manufacturers,  whose  works  I  visited,  with  the 
representatives  of  leading  British  newspapers,  and  with 
the  editors  of  some  of  the  more  important  Russian  journals. 

My  work  and  investigations  were  purely  of  a  com- 
mercial and  business  character  and  had  nothing  to  do  with 
either  politics  or  the  military  situation,  though  they  neces- 
sarily embraced  a  study  of  the  people,  their  habits,  cus- 
toms and  outlook  on  life.  The  result  of  the  trip  was  so 
satisfactory  that  arrangements  were  made  for  permanent 
representation  of  the  Commission  in  Russia  itself,  and  also 
for  a  second  trip  taken  in  1917  by  another  member  of  the 
Commission  on  behalf  of  a  further  combination  of  British 
manufacturers  in  non-competing  businesses.  Upon  this 
occasion  we  were  favoured  with  a  letter  of  recommenda- 
tion by  M.  Sabokof,  the  Russian  Charge  d'Affaires  in  Lon- 
don, while  the  British  Government  gave  those  special 
facilities  for  transport,  etc.,  without  which  the  trip  could 
not  have  been  undertaken  under  the  then  existing  circum- 
stances. 

Incidentally,  I  would  recommend  anyone  to  approach 
the  Foreign  Office  rather  than  the  Board  of  Trade  for  any 
assistance,  even  in  commercial  matters.  The  support 
asked  from  the  latter  department,  and  refused,  was  readily 
granted  by  the  former.  The  Commercial  Intelligence 
Department  of  the  Board  of  Trade,  under  its  present 
political  administration,  is  of  very  little  help  to  the  British 
manufacturer,  and  its  information,  when  it  has  any  to  give, 
is  usually  qualified  and  of  little  value,  if  not  entirely  un- 
reliable. It  is  now  demanding  a  fee  of  ten  guineas  a  year 
for  information  that  should  be  available  free  to  any 


4  COMMERCIAL  RUSSIA 

British  manufacturer  from  a  public  department  supported 
by  taxes. 

The  second  trip  was  taken  under  circumstances  of  ex- 
ceptional difficulty.  The  Revolution  was  at  its  height, 
travel  was  irksome  and  unpleasant,  hotel  accommodation 
was  Umited  and  very  expensive.  Nevertheless,  Mr.  S.  W. 
Coxon,  who  went  out  on  behalf  of  the  Commission,  and 
the  Petrograd  representative,  Mr.  H.  S.  Lister,  made  a 
tour  of  the  country  together,  and  gathered  some  valuable 
information  and  rendered  very  effective  and  satisfactory 
seiYice. 

The  result  of  the  combined  experiences  of  these  two  trips, 
together  with  that  derived  from  numerous  correspon- 
dents in  Russia,  both  natives  and  Englishmen  long  settled 
in  that  country,  are  embodied  in  this  book. 

My  endeavour  has  been  to  avoid  a  mass  of  merely 
statistical  tables  and  summaries  of  Consular  and  other 
official  reports,  and  rather  to  afford  some  practical  informa- 
tion that  will  give  the  British  manufacturer,  desirous  of 
knowing  what  Russia  means  to  him,  some  idea  of  the 
country  from  a  business  standpoint,  and  some  indication 
of  the  possibilities  of  his  doing  a  safe  and  profitable  busi- 
ness after  the  war,  together  with  the  best  methods  suited 
to  his  individual  circumstances.  It  is,  moreover,  more 
especially  intended  for  the  smaller  manufacturer  and 
exporter,  the  man  who  has  hitherto  done  little  or  no 
business  with  Russia,  than  for  the  firm  which  already  has 
its  estabUshed  connections  and  ramifications  throughout 
the  Russian  Empire,  though  even  this  may  perhaps  find 
in  these  pages  some  suggestions  for  the  development  of 
its  business,  and  for  the  improvement  of  its  methods 
in  some  particulars. 

Perhaps  the  first  and  strongest  impression  made  upon 
my  mind  is  that  the  marvellous  changes  of  the  past  few 
years  have  entirely  altered  the  whole  situation  in  Russia. 


INTRODUCTION  5 

The  man  who  "  knew  Russia  "  before  the  war  does  not 
know  it  now,  whether  it  be  the  EngHshman  who  has 
travelled  in  Russia,  or  the  Russian  resident  in  this  country. 
The  development  of  Russian  industrial  enterprise  will 
modify  the  demand  for  some  articles  and  enormously 
increase  that  for  machinery,  and  everything  required  for 
factory  equipment  and  maintenance.  The  Russian  tariff 
is  in  the  melting-pot.  Nobody  knows  what  will  happen, 
except  that  it  is  fairly  certain  to  discriminate  in  favour 
of  the  Allies  as  against  the  Central  Powers.  That  it  will  be 
continued  at  a  fairly  high  rate  is  extremely  probable.  It 
is  the  principal  source  of  revenue,  direct  taxation  being 
practically  unknown.  An  income  tax  had  for  the  first 
time  been  arranged  shortly  before  the  revolution,  and  this 
will  very  likely  be  continued,  if  not  increased  ;  but  with 
so  many  millions  of  non-potential  taxpayers,  Russia  must 
depend  upon  the  indirect  taxes  of  customs  duties  to  collect 
her  share  of  needed  revenue  from  all  classes  of  the  popula- 
tion. Efforts  will  no  doubt  be  made  at  an  Allied  conference 
to  remove  some  of  the  anomalies  of  the  Russian  tariff,  the 
confusion  of  indefinite  descriptions  giving  rise  to  different 
interpretations,  and  the  substitution,  in  some  cases  at  any 
rate,  of  an  ad  valorem  duty  instead  of  one  by  weight  only. 
It  should,  however,  be  borne  in  mind  that  the  Russian 
tariff  is  one  of  domestic  concern  only.  The  duties  increase 
the  cost  to  the  Russian  consumer,  and,  so  far  as  Great 
Britain  is  concerned,  if  we  are  in  as  favourable  a  position 
as  any  other  country,  only  operate  against  us  to  the  extent 
of  local  Russian  manufactures. 

.  The  situation  has  changed  in  respect  to  the  thmgs  that 
Russia  will  require  after  the  war.  Reference  has  already 
been  made  to  the  new  demands  that  will  be  created  by  an 
abnormal  development  of  Russian  industrial  enterprise. 
To  this  may  be  added  the  construction  of  railways,  munici- 
pal tramways,  lighting,  water  and  sanitary  improvements, 


6  COMMEECIAL  EUSSIA 

the  building  of  bridges,  and  the  development  of  ports  with 
new  docks  and  accessories,  and  the  building  of  ships.  But 
a  no  less  increase  will  take  place  in  the  demand  for  every 
article  of  domestic  use  and  comfort.  The  abolition  of 
vodka  has  made  possible  the  purchase  by  the  poorer 
classes  of  things  hitherto  unattainable,  and  already  the 
demand  for  boots,  shoes,  hats,  things  to  wear  and  things 
to  eat,  for  the  comfort  and  decoration  of  the  home,  is 
far  in  excess  of  anything  heretofore  known.  Millions  of 
men  drawn  from  the  remotest  parts  of  the  empire,  whose 
previous  experiences  have  been  circumscribed  by  their 
own  wretched  villages  and  poverty-stricken  homes,  have 
come  under  the  influence  of  the  larger  cities,  where  they 
have  been  trained  for  the  army,  and  of  their  experience 
at  the  front,  and  will  return  with  new  ideals  and  aspira- 
tions. The  Revolution,  with  its  sense  of  increased  personal 
dignity  and  importance,  will  be  reflected  in  a  demand  for 
better  conditions  of  life. 

The  development  of  Eussian  industries,  however  great, 
will  come  very  short  of  supplying  this  increased  demand 
arising  from  changed  conditions,  and  will  not  be  sufficient 
for  a  long  time  to  even  meet  that  necessitated  by  an  annual 
increase  of  nearly  three  millions  in  population.  The 
almost  inexhaustible  natural  resources  of  the  country 
needed  only  the  abolition  of  vodka,  with  the  resultant 
increased  productive  capacity  of  the  people,  the  improve- 
ment in  financial  conditions,  and  the  growing  sense  of 
jjersonal  responsibihty  as  sovereign  citizens  of  a  great 
republic,  to  ensure  their  development  to  such  an  extent, 
as  to  make  paying  for  these  increased  demands  a  com- 
paratively easy  matter. 

Granted  that  the  demand  for  imports  by  Russia  after 
the  war  will  be  unprecedented  in  its  history,  and  that  the 
national  resources  and  productive  capacity  will  enable 
her  to  pay  for  them  in  increased  exports,  the  question 


INTRODUCTION  7 

naturally  arises  who  will  get  the  benefit  of  it,  and  how, 
more  particularly,  can  Great  Britain  get  her  share  ? 

Before  the  war  Germany  and  Austria  had  considerably 
more  than  half  of  Russia's  import  trade.  It  was  not 
entirely  through  German  ''  methods,"  which  we  are  so 
often  urged  to  copy,  though  these  had  doubtless  much  to 
do  with  the  result.  As  a  neighbour,  with  some  hundreds 
of  miles  of  artificial  border-hne,  and  as  a  large  purchaser 
of  Russia's  exports,  Germany  had  advant^-ges  belonging 
to  no  other  country  to  start  with.  Three  factors  will  mili- 
tate against  Germany  after  the  war.  The  first  will  be  the 
discriminating  duties  that  will  undoubtedly  be  levied 
against  the  Central  Powers.  The  second  will  be  Germany's 
inability  to  give  long  credits,  and  a  great  restriction  of  her 
former  ramifications  in  acquiring  information.  The  third 
will  be  that  natural  antipathy  to  Germans  and  German 
goods  that  will  prevail  for  some  time  among  those  who 
have  suffered.  The  war  has,  moreover,  opened  the  eyes 
of  the  Russian  people  to  the  manner  in  which  they  have 
been  commercially  exploited  by  Germany,  and  how  depen- 
dent they  have  been  on  her  for  almost  everything  they 
required. 

No  country,  not  even  England  and  the  Allies,  will  ever 
be  allowed  to  exploit  Russia  as  Germany  has  done.  It  may 
not  be  out  of  place  here  to  suggest  that  we  should  approach 
the  question  of  later  Russian  trade  with  a  certain  amount 
of  caution,  in  order  to  remove  any  impression  that  we  are 
attempting  to  take  up  the  role  of  Germany.  Sympathy 
is  the  keynote  of  the  Russian  character,  and  if  the  Russians 
feel  that  we  are  ready  to  help  them  build  up  their  own 
industries,  develop  their  natural  resources  and  supply 
them  with  their  surplus  wants,  they  will  readily  respond 
to  our  overtures.  On  the  other  hand,  if  we  assume  too 
much  that  we  look  upon  Russia  as  a  market  to  be  "  cap- 
tured "  and  exploited  entirely  in  our  own  interest  and 


8  COMMERCIAL  RUSSIA 

to  our  own  advantage,  suspicion  will  be  followed  by 
antagonism. 

The  three  factors  referred  to  that  will  operate  against 
Germany  after  the  war  will  necessarily  be  to  our  advan- 
tage and  to  that  of  our  Allies,  and  amongst  them  naturally 
to  the  United  States,  Japan  and  France.  The  two  former 
countries  have  the  advantage  of  the  start  by  being  able  to 
supply  Russia's  wants  to  some  extent  during  the  war. 
America  had,  moreover,  the  lead  already  in  agricultural 
machinery  and  in  sewing  machines.  She  has,  however, 
the  disadvantage  of  distance  and  time,  the  former  adding 
to  the  cost  of  carriage,  and  the  latter  entaihng  longer 
credit.  Temperamentally,  too,  the  husthng  American 
finds  the  easy-going,  procrastinating  Russian  very  irri- 
tating, while  the  latter  is  equally  out  of  sympathy  with 
the  former's  impatience.  Nevertheless,  the  Americans 
are  organizing  for  trade  in  Russia  after  the  war,  and  even 
the  Canadian  Government  is  far  in  advance  of  our  f ossiUzed 
Board  of  Trade,  for  Canada  is  represented  in  Russia  by  its 
own  Trade  Commission,  wdth  its  own  offices.  In  the  things 
in  which  the  United  States  excels,  in  the  goods  she  already 
exports  even  to  this  country,  she  will  probably  more  than 
hold  her  own  in  Russia  after  the  war. 

There  is  a  somewhat  widespread  feeling  in  this  country 
that  Russia  only  purchases  ''  cheap  and  nasty  goods." 
Some  months  ago  I  gave  an  address  on  Russian  possi- 
biUties  before  a  business  audience  in  a  Yorkshire  town. 
The  gentleman  who  proposed  the  customary  vote  of  thanks, 
after  paying  the  usual  comphments,  disagreed  with  most 
of  what  I  said.  "  Russians,"  he  said,  "  were  nearly  all 
peasants,  rude  and  dirty,  who  wore  neither  boots  nor  hats, 
and  very  little  clothing,  and  what  they  bought  was  trash, 
which  he  hoped  this  country  would  never  manufacture." 
He  claimed  to  be  speaking  with  authority  and  experience, 
as  he  had  visited  the  country,  I  think,  some  thirty  years 


INTRODUCTION  9 

previously.  As  a  matter  of  fact,  there  are  probably  more 
very  rich  people  in  Russia  than  in  any  other  country  in 
Europe,  and  these  are  ostentatiously  lavish  in  their  ex- 
penditure, nothing  being  too  good  for  them.  Then  there 
are  twenty-five  milHons  of  Russians  who  are  living  in  the 
towns.  However,  it  is  true  that  a  great  deal  of  relatively 
cheap  goods,  such  as  knives  and  forks,  to  give  an  illustra- 
tion, are  used  in  Russia.  This  class  of  trade  will,  in  my 
judgment,  largely  go  from  Germany  to  Japan. 

The  first  two  or  three  years  after  the  war  will  offer 
boundless  possibiUties  for  Great  Britain,  not  only  in 
machinery,  factory  plant  and  the  requirements  of  Govern- 
ment and  municipal  undertakings,  but  also  in  almost  every 
conceivable  kind  of  merchandise.  But  it  will  be  a  case  of 
''  thrice  armed  is  he  who  gets  his  blow  in  first."  In  a  few 
years  Germany  will  have  recovered  somewhat  from  her 
position  immediately  after  the  war,  Russian  antagonism 
will  die  down  under  the  stress  of  competition  and  possibly 
the  dearth  of  supplies,  and  the  British  manufacturer  '^  who 
will  not  when  he  may,  when  he  will  he  shall  have  nay." 

A  great  deal  has  been  said  and  written  about  the  neces- 
sity of  having  catalogues  in  Russian,  corresponding  in 
that  language,  and  invoicing  in  terms  of  Russian  weights 
and  measures  and  coinage.  The  difiiculties  and  expense 
in  the  case  of  the  smaller  manufacturers  seem  at  first  sight 
too  great  for  the  probable  results. 

The  question  of  catalogues  and  price-lists  is  a  compara- 
tively easy  one.  Abridged  catalogues,  illustrating  the 
principal  articles  likely  to  be  required  in  the  Russian 
market,  are  already  being  prepared  by  several  firms. 
Some  of  our  large  printing  firms  are  speciaUsing  in  Russian 
printing,  especially  Messrs.  Taylor,  Garnett,  Evans  and 
Company,  of  Manchester,  who,  in  addition  to  having  a 
splendid  selection  of  Russian  type,  have  the  assistance  of 
thoroughly  reliable  and  competent  translators. 


10  COMMERCIAL  RUSSIA 

The  new  Marconi  code  promises  to  materially  help  in  the 
matter  of  Russian  correspondence.  They  are  publishing 
five  code-books  covering  eight  languages,  besides  EngHsh, 
the  code  word  in  each  case  being  followed  by  the  sentence 
in  English,  and  in  the  first  book  by  Russian  and  Japanese 
also.  So  that  in  addition  to  being  a  valuable  code,  brought 
up  to  date  by  the  inclusion  of  the  latest  technical  and 
scientific  terms,  it  is  also  a  splendid  lexicon  for  business 
correspondence.  By  the  use  of  a  few  code  words  a  com- 
plete letter  can  be  written,  which  will  be  easily  translated 
by  the  Russian  correspondent,  or  if  written  by  him,  will  be 
readily  interpreted  by  any  clerk  of  average  intelUgence. 
Moreover,  the  impetus  given  to  the  study  of  Enghsh  in 
Russia  and  of  Russian  in  England  makes  facihties  for 
translation  very  much  easier  than  formerly. 
i^  Russian  coinage  presents  very  little  difficulty,  being  on 
the  decimal  system,  and  consisting  only  of  roubles  and 
kopecks,  one  hundred  kopecks  making  one  rouble.  Of 
course,  when  selhng  in  roubles  it  is  necessary  to  figure  at 
such  a  rate  of  exchange  as  will  give  the  British  exporter 
the  proper  amount  in  sterUng.  This  has  been  practically 
impossible  during  the  war  on  account  of  the  fluctuation 
of  exchange,  which  has  risen  as  high  as  forty  roubles  to 
the  pound  sterling,  as  against  about  9-|  in  normal  times. 
It  should,  however,  be  remembered  that  the  bulk  of  goods 
exported  from  this  country  to  Russia  during  the  war  have 
been  on  account  of  Government  supplies,  and  have  been 
paid  for  in  sterling,  or  at  an  agreed  rate  of  exchange  between 
the  two  Governments,  very  much  lower  than  the  market 
C[uotations.  '^he  restrictions  against  imports  and  exports 
^  both  by  the  British  and  Russian  Governments,  and  the 
latter's  embargo  against  money  coming  out  of  the  country, 
have  resulted  in  a  nominal  and  largely  fictitious  rate  of 
exchange  only  applicable  to  very  small  transactions. 
The  mifavouiable  foreign  exchange  proves  very  little 


INTRODUCTION  11 

beyond  the  fact  that  Eussia  cannot  export  its  produce. 
The  great  fall  in  the  export  of  grain,  timber,  etc.,  cannot 
be  made  good  by  the  export  of  foreign  securities,  owing 
to  the  fact  that  hitherto  Russia  has  not  invested  abroad. 
The  prices  that  have  been  paid  for  foreign  currency  have 
been  chiefly  determined  by  the  scarcity  of  that  currency. 
The  unfavourable  tendency  of  foreign  exchange  has 
brought  about  the  usual  result.  High  prices  always  induce 
the  public  to  buy.  Fancy  prices  for  everything — that  is 
the  motto  of  the  modern  millionaire.  Why  not,  therefore, 
fancy  prices  for  currency  ?  It  is  to  be  regretted  that 
many  business  men,  panic-stricken  by  the  internal  struggles 
and  the  temporary  lack  of  order,  have  joined  in  the  rush 
for  foreign  currency.  The  rise  in  prices  has  again  brought 
in  fresh  buyers.  The  fact  is  that  what  has  happened 
recently  with  foreign  currency  is  just  what  will  probably 
happen  with  the  Russian  rouble  in  the  near  future.  When 
the  rate  of  the  rouble  rises,  there  will  be  a  rush  to  buy 
roubles.  That  faith  in  the  rouble  still  exists  is  shown  by 
the  foreign  subscriptions  to  the  Liberty  Loan.  The 
financial  position  of  Russia,  it  is  declared  by  Mr.  Nekrasoff 
and  M.  Bernadski,  is  very  far  from  being  alarming. 

The  well-informed  Petrograd  correspondent  of  the  Daily 
Telegraph  says  that  the  Russian  money  market  has  proved 
itself  able  to  absorb  an  absolutely  unprecedented  amount 
of  internal  loans.  This  fact  alone  constitutes  a  ground  for 
anticipating  that  the  Russian  exchange  will  recover  with 
much  greater  rapidity  than  is  generally  expected.  The 
Liberty  Loan  issued  by  the  Provincial  Government  met 
with  a  satisfactory  response.  The  amount  taken  up  was 
over  3,500,000,000  roubles,  a  sum  exceeding  the  total 
Russian  Budget  before  the  war.  It  is  true  that  the  loan 
was  financed  to  a  certain  extent  by  the  banks,  but  the 
amount  of  private  subscriptions  was  very  large.  The  bulk 
of  the  internal  indebtedness  incurred  owing  to  the  war 


12  COMMERCIAL  RUSSIA 

consists  of  short-dated  Treasury  bonds  discounted  by  the 
State  bank  on  the  open  market.  The  issue  of  these  bonds 
has  led  to  a  considerable  increase  in  the  issue  of  paper 
money,  amounting  to  15,000,000,000  roubles.  This  figure, 
if  compared  with  the  issues  of  paper  money  in  some 
other  countries,  should  not  arouse  undue  anxiety  as  to  the 
future  of  the  rouble.  The  rouble  note  is  a  debenture 
secured  by  the  enormous  natural  resources  of  Russia,  a 
country  covering  one-seventh  of  the  globe,  with  a  popula- 
tion of  one  hundred  and  eighty  miUions.  The  high  prices 
are  to  be  explained,  not  so  much  by  the  large  issue  of  paper 
money,  as  by  the  exceptional  scarcity  of  goods,  and  by  the 
defective  organisation  of  distribution.  The  heavy  fall  in 
imports  and  the  temporary  decrease  in  output  have  created 
a  situation  in  which  there  is  very  Httle  to  buy  and  much 
money  to  buy  it  with.  Under  such  conditions  prices  natur- 
ally go  up.  It  is  to  be  hoped,  however,  that  an  increase 
in  production  in  the  near  future  will  check  this  rise. 

On  the  other  hand,  however,  British  manufacturers 
having  credits  in  Russia,  while  able  to  collect  their  accounts 
have  not  been  able  to  get  the  money  out  of  the  country, 
and  miUions  of  roubles  are  lying  to  their  credit  in  Russian 
banks  until  the  war  is  over,  or  action  is  taken  by  the 
Russian  Government  enabling  the  transfer.  These  credits, 
while  bearing  interest,  are  much  depreciated  in  sterling 
value.  Whether  the  rouble  will  ever  regain  its  former 
value  is  a  moot  point,  but  the  general  impression  seems  to 
be  that  it  will  go  to  about  twelve  roubles  to  the  poimd 
sterling  as  soon  as  hostihties  cease,  and  remain  there  for 
some  time  until  Russia's  exports  will  more  nearly  balance 
with  her  imports. 

The  metric  system  is,  however,  much  more  generally 
adopted  in  Russia  than  in  this  country,  and  those  manu- 
facturers who  use  it  in  other  departments  mil  find  very 
Httle  difficulty  in  deaUng  with  weights  and  measures. 


INTEODUCTION  13 

The  average  Russian  clerk  is  not  much  good  as  a  mathe- 
matician. Nearly  all  his  calculations  are  made  on  a  special 
kind  of  abacus,  a  wire  frame  with  beads.  These  are  found 
on  the  desks  in  every  bank  and  business  office,  and  on  the 
counters  of  every  shop.  The  Russians  are  very  expert  and 
accurate  in  its  use,  and  columns  of  figures  are  added  up 
and  calculations  made  much  more  quickly  than  by  the 
mental  process.  The  use  of  the  "  schott "  is  so  general 
that  it  is  rare  to  find  a  Russian  who  can  make  a  mental 
calculation  or  addition,  or  even  do  so  in  the  ordinary  way. 
Judge,  then,  what  it  means  to  get  an  invoice  for  5  tons 
13  cwts.  3  qrs.  and  11  lbs.  at  £5  13s.  9d.  per  ton.  One  such 
invoice  was  brought  to  me  for  verification,  and  I  must 
admit  the  Russian  had  the  laugh  on  me,  and  I  never 
appreciated  before  so  much  the  absurdity  of  our  methods, 
or  became  so  strong  a  convert  to  the  metric  system. 

This  is  being  written  in  January,  1918,  when  the  pohtical 
situation  is  still  extremely  obscure.  I  will  not  venture 
into  the  realms  of  prophecy,  and  it  is  no  part  of  such  a 
book  as  this  to  discuss  the  numerous  questions  arising 
out  of  the  revolutionary  movement.  I  am,  however,  suffi- 
ciently optimistic  to  beheve,  as  do  all  those  who  best  know 
Russia  and  the  Russians,  that  saner  counsels  will  ulti- 
mately prevail,  and  that  the  country  will  emerge  from  its 
present  crisis  as  one  of  the  great  progressive  Republics  of 
the  world,  inspired  by  lofty  ideals  and  by  a  more  practical 
outlook  than  at  present. 

In  any  case,  whatever  may  be  the  outcome  of  the  present 
situation,  the  fact  remains  that  nearly  two  hundred  mil- 
lions of  people,  whether  they  continue  to  be  one  united 
Russia,  or  a  number  of  smaller  states  and  repubhcs,  will 
want  everything  that  the  United  Kingdom  can  supply, 
and  that  they  are  so  abundantly  supplied  with  natural 
resources  that  the  question  of  payment  is  not  a  difficult 
one.    The  unexplored  forests  of  Russia  would  alone  pay 


14  COIVTMEECIAL  RUSSIA 

for  all  its  war  debt  and  leave  a  handsome  margin.  And  it 
should  be  remembered  that  Russia — that  is,  the  Russian 
people — are  the  creatures  of  circumstances  beyond  their 
own  control,  and  need  our  sympathy  rather  than  deserve  our 
criticism.  If  Germany  gets  a  commercial  foothold  again 
in  Russia,  it  will  not  be  through  diplomatic  or  poHtical 
action,  but  owing  to  its  preparedness  and  our  lethargy. 
;  The  really  important  thing  is  to  begin  to  make  pre- 
parations now.  The  number  of  reliable  agents  is  limited, 
and  the  manufacturer  who  is  first  in  the  field  has  the  best 
choice  with  whom  to  begin  operations  as  soon  as  the  war 
is  over.  Many  of  the  best  men  in  the  various  cities  are 
already  committed,  and  could  not  take  up  the  representa- 
tion of  competing  lines.  The  first  of  British  goods  in  any 
line  to  reach  the  Russian  market  will  have  a  tremendous 
advantage  over  its  competitors.  It  is,  of  course,  impossible 
to  do  business  now ;  most  manufacturers  are  busy  on 
Government  orders,  and  others  are  unable  to  meet  the 
home  demand.  But  this  does  not  prevent  their  present 
investigation  of  the  Russian  market,  so  far  as  their  own 
particular  business  is  concerned,  making  tentative  arrange- 
ments with  customers  and  agents,  and  preparing  for  their 
share  of  one  of  the  richest  markets  in  the  world,  a  market 
which  they  will  want  when  munition  fires  are  dampened 
down,  when  swords  shall  again  be  turned  into  plough- 
shares. When  the  boys  come  home  they  will  want  factory 
fires,  as  well  as  home  fires,  kept  burning. 

The  next  war  will  be  a  commercial  one,  a  war  that 
cannot  possibly  be  averted.  Whatever  theories  are 
advanced,  or  whatever  terms  may  be  embodied  in  treaties 
as  to  business  opportunities,  a  commercial  war  is  inevit- 
able. Furthermore,  whatever  may  happen  in  Russia, 
if  the  worst  fear  of  pessimists  is  reahsed  (though  I  have 
unbounded  faith  that  Russia  will  eventually  come  trium- 
phantly out  of  her  trials),  the  fact  remains  that  there  will 


INTRODUCTION  16 

be  a  market  of  nearly  two  hundred  millions  of  people 
demanding  hundreds  of  milUons  of  pounds'  worth  of  goods 
per  annum,  and  with  unlimited  resources  with  which  to 
pay  for  them.  For  this  market  and  for  this  war  Germany, 
with  all  her  difficulties,  with  all  her  tremendous  handicap, 
is  already  preparing  ;  preparing  with  the  same  thorough- 
ness and  foresight  as  she  did  for  the  present  conflict.  The 
result  lies  in  our  own  hands  if  we  but  take  advantage 
of  our  opportunities  now.  ^ 


II 

TRAVELLING   IN   RUSSIA 

Before  the  War — Via  Norway  and  Sweden — Russian  trains  slow — Cheap 
fares — Zone  system — Tickets  in  advance — Luggage — Smoking  compart- 
ments— Meals  671  route — At  the  station— Steamboat  travel — Travelling  in 
Siberia — Coach  travelling — Motoring — Russian  railway  systems — Hotels. 

THE  ordinary  route  to  Russia  in  pre-war  times  was 
by  way  of  Berlin.  During  the  war,  passengers  have 
had  to  cross  from  Newcastle  to  Bergen,  thence  by  rail  to 
Christiania,  and  either  through  Stockholm,  or  going  on 
direct  to  Haparanda,  the  most  northerly  point  of  railway 
in  Sweden,  and  just  outside  the  Arctic  Circle,  at  the  head 
of  the  Gulf  of  Bothnia.  For  mihtary  and  pohtical  reasons 
there  are  no  through  lines  of  rails  between  Sweden  and 
Russia,  and  the  passenger  had  to  cross  the  river  by  boat 
in  summer  and  by  sleigh  in  winter,  to  Torneo,  in  Finland, 
and  thence  through  the  entire  length  of  that  country  to 
Petrograd.  Steamers  carrying  passengers  also  ran  from 
EngUsh  ports  to  Riga  and  Petrograd  before  the  war. 

The  Great  Northern  Railway,  in  conjunction  with  the 
Norwegian  and  Swedish  State  railways,  had,  previous  to 
the  war,  begun  to  develop  travel,  not  only  in  Norway  and 
Sweden,  but  also  through  those  countries  to  Russia  by 
way  of  Stockholm,  from  which  it  is,  in  ordinary  times,  a 
short  and  pleasant  boat  trip  across  to  Finland.  While 
this  wiU  take  a  little  longer  time  than  the  ordinary  route 
through  Holland  and  Germany,  it  is  one  that  will  be  pre- 
ferred by  many  people  on  account  of  the  magnificent 
Scandinavian  scenery,  as  well  as  from  the  desire  to  avoid 
Germany  as  much  as  possible. 

16 


TEAVELLING  IN  RUSSIA  17 

Travelling  by  rail  in  Eussia,  while  generally  much 
slower  than  in  England,  is,  in  normal  times,  exceedingly 
comfortable.  On  account  of  the  long  distances,  practically 
every  train  is  provided  with  sleeping  accommodation. 
The  first-class  compartments  accommodate  two,  and  the 
second-class  four  passengers,  and  are  quite  commodious. 
The  trip  from  Moscow  to  Petrograd,  which  takes  twelve 
hours  and  is  usually  made  at  night,  is  the  shortest  that 
the  average  traveller  will  be  called  upon  to  make,  the 
usual  run  between  good-sized  cities  being  from  twenty- 
four  to  forty-eight  hours.  *^ 

Eussian  railways  are  of  great  length,  and  almost  all 
except  main  lines  possess  only  single  metals.  With  few 
exceptions,  such  as  the  Warsaw- Vienna  railway,  they 
differ  from  the  continental  railways  in  gauge,  the  Eussian 
gauge  being  considerably  broader ;  hence  there  are  no 
through  carriages  from  other  parts  of  Europe.  This  gauge 
was  adopted  formerly  for  strategical  reasons ;  and  it  has 
now,  however,  been  discovered  that  it  does  not  constitute 
a  serious  obstacle  for  an  enemy,  but  it  causes  great  in- 
convenience to  railway  transport,  as  only  specially 
constructed  carriages,  with  adjustable  wheels,  can  be 
used  for  trains  running  between  Eussia  and  other 
countries. 

The  Eussian  railways  are  an  example,  not  only  of  great 
length,  but  also  of  great  slowness.  It  has  been  jocularly 
stated  that  there  are  only  two  railway  speeds  in  Eussia — 
"  slow  "  and  "  stop."  The  Eussian  citizen  is  perfectly 
contented  with  twenty-five  miles  an  hour.  It  represents 
a  great  speed  in  comparison  with  the  coach  travelhng  to 
which  he  is  accustomed.  Of  course,  express  trains  run 
more  quickly,  their  speed  being  thirty-five,  or  even  more, 
miles  per  hour.  But  these  are  few,  and  such  on  the  main 
hues  only.  The  slowness  of  travelling  in  Eussia  is  in- 
creased by  numerous  and  long  stops  at  various  stations. 


18  COMMERCIAL  EUSSIA 

In  addition  to  this,  trains  are  very  often  late  by  as  much 
as  an  hour  or  more. 

Though  travelling  in  Russia  is  a  slow  business,  it  is 
nevertheless  very  cheap.  The  population  being  com- 
paratively poor,  and  distances  long,  railway  charges  must 
be  low.  The  Russian  system  is  such  that  the  further  a 
traveller  journeys  the  less  he  has  to  pay  per  mile.  This 
is  achieved  by  the  Zone  system.  It  is  arranged  as  follows  : 
On  distances  between  1  and  160  versts  the  charge  is 
Ij  kopecks  per  verst  (a  verst  being  two-thirds  of  a  mile). 
On  distances  between  161  and  300  versts  the  charge  is 
1  kopeck  (one  farthing)  for  each  verst.  After  300  versts 
the  charge  is  not  per  verst,  but  per  a  certain  number  of 
versts,  representing  a  girdle  or  zone.  The  longer  the 
distance  the  greater  is  the  girdle.  For  instance,  from 
301  to  500  versts  there  are  8  girdles  of  25  versts  each ; 
from  501  to  710  versts  there  are  7  girdles  of  30  versts  each, 
and  so  on.  At  the  distance  of  2,900  versts  the  girdle 
represents  as  many  as  50  versts.  Although  the  girdles  go 
on  increasing  with  distance,  the  railway  charge  per  girdle 
remains  the  same,  viz.  25  kopecks  per  girdle  for  a  third- 
class  ticket.  This  means  that  a  third-class  traveller  who 
proceeds,  say,  from  Petrograd  to  central  Siberia  pays  about 
6d.  for  each  33  miles.  Passengers  of  the  second  class  pay 
nearly  double  fare,  while  first-class  passengers  pay  three 
times  more  than  the  third-class  passengers,  and  exactly 
as  much  as  the  second  and  third  combined.  In  addition 
to  this  a  small  tax  for  the  Red  Cross  is  charged.  Each 
ticket  is  available  for  a  certain  time  only,  which  is  indi- 
cated on  the  ticket  according  to  the  distance.  The  journey 
may  be  broken  at  any  station,  but  the  ticket  must  be  im- 
mediately handed  to  the  station-master,  that  he  may 
endorse  it.  Passengers  while  traveUing  can  change  their 
class  by  paying  the  difference  in  fares. 

Trains,  being  few,  are  often  overcrowded,  hence  it  is 


TRAVELLING  IN  RUSSIA  ig 

very  important  to  procure  tickets  and  seats  as  early  as 
.possible.  In  large  towns  this  is  facilitated  by  the  existence 
of  town  ticket  offices.  In  such  cities  as  Petrograd  or  Mos- 
cow, the  simplest  plan  for  an  Englishman  is  to  commission 
a  porter  in  his  hotel  to  obtain  the  required  ticket.  In  the 
largest  hotels  a  special  man  is  kept  for  the  purpose,  and  he 
usually  speaks  English  or  French.  It  is  advisable,  how- 
ever, to  give  him  such  an  order  in  advance.  Especially  for 
express  trains  and  sleeping-cars,  ample  time  has  to  be 
given,  as  it  often  happens  that  all  tickets  are  reserved  for 
some  time  in  advance  on  such  lines  as  the  Petrograd-Mos- 
cow.  If  the  traveller  is  in  a  hurry,  the  man  commissioned 
with  the  purchase  of  his  ticket  can  usually  manage  to  get 
the  ticket  for  a  few  roubles  extra.  There  are  also  a  certain 
number  of  tickets  always  left  for  sale  at  the  railway  station 
in  the  booking-office  a  quarter  of  an  hour  before  the  depar- 
ture of  the  train.  When  the  demand  for  tickets  is  very 
great,  some  time  is  required  for  waiting  in  a  queue  before 
the  booking-office  window,  and  then  there  is  a  risk  of 
missing  the  train.  Such  cases,  however,  are  exceptional, 
and  on  particular  lines,  as  for  instance,  at  the  time  of  the 
Nijni-Novgorod  fair.  In  the  smaller  towns,  where  tickets 
can  be  booked  only  at  the  railway  stations,  it  is  advisable 
to  arrive  not  less  than  half  an  hour  before  the  departure  of 
the  train. 

The  best  way  is  to  procure  a  porter  (nasilshchik),  even 
when  the  traveller  has  hardly  any  luggage,  and  could  carry 
it  himself.  A  Russian  travelling  with  no  luggage  whatever 
will  give  his  umbrella  or  walking-stick  to  the  porter,  simply 
with  the  object  of  obtaining  a  good  seat.  The  porter  will 
buy  his  ticket  and  will  get  him  a  seat.  One  can  safely  give 
him  as  much  as  100  roubles  in  bank-notes  for  the  ticket. 
He  will  bring  it  with  the  exact  change.  It  is  very  impor- 
tant, however,  to  remember  the  number  on  his  cap  or  on  a 
brass  plate  hanging  on  his  breast.    It  is  important  because 


20  COMMERCIAL  RUSSIA 

the  porter  may  forget  what  his  customer  looks  like,  although 
in  the  case  of  a  foreigner  this  does  not  usually  occur. 

If  the  passenger  has  luggage  which  he  wishes  to  put  into 
the  luggage  van,  the  porter  will  see  to  it.  All  such  luggage 
must  be  registered.  One  pood  (40  Russian  or  36  English 
pounds)  is  conveyed  free  of  charge,  and  any  surplus  weight 
is  charged  according  to  the  distance.  The  ticket  must  be 
produced  during  this  registration,  and  the  railway  official 
stamps  this  ticket  and  gives  a  receipt  for  the  luggage.  The 
racks  in  Russian  trains  are,  however,  very  large  and  com- 
modious, and  will  hold  three  or  four  times  the  amount  of 
luggage  that  one  can  get  into  a  compartment  in  an  English 
train.  In  practice,  a  passenger  is  allowed  all  the  luggage 
he  can  take  with  him,  and  the  porter  has  a  wonderful  knack 
of  getting  half  a  dozen  or  more  bags  and  cases  stowed 
away. 

The  porter  must  be  informed  of  the  name  of  the  station 
to  which  the  passenger  is  proceeding,  the  train  according 
to  the  time-table,  the  class,  and  the  kind  of  compartment, 
viz.  smoking,  non-smoking,  ladies,  or  sleeping-car,  as  the 
case  may  be.  The  passenger  can  get  along  quite  comfort- 
ably with  about  twenty  words  of  Russian.  There  are  the 
following  kinds  of  trains  :  Express  trains  (kuryerski  or 
skori),  mail  trains  (potchtovi),  which  are  a  Httle  slower ; 
passenger  trains  (passajerski),  passenger-goods  trains 
(passajersko-tovarny),  and  goods  trains  (tovarny).  There 
are  first  and  second  class  in  express  trains,  sometimes  first 
only.  First,  second  and  third  in  the  rest  of  the  trains,  and, 
on  some  fines,  there  is  also  a  fourth  class,  the  compartments 
being  little  more  than  cattle-trucks,  attached  to  slow 
trains. 

In  Russia,  if  there  is  no  notice  in  or  outside  of  the  com- 
partment, passengers  are  allowed  to  smoke.  The  notice  of 
no  smoking  (dla  nekuriashchikh),  for  ladies  (dla  dam),  and 
sometimes  but  not  always  smoking  (dla  kuriashchikh),  is 


TRAVELLING  IN  RUSSIA  21 

usually  placed  outside  the  compartment  in  the  corridor 
over  the  door. 

Almost  all  carriages  are  corridor  carriages,  and  at  the 
end  of  the  corridor  there  is  a  lavatory  (ubornaia).  There 
is  also  a  wash-basin  in  most  of  the  first-class  compart- 
ments. 

Generally  speaking,  all  carriages  and  all  classes  provide 
sleeping  accommodation,  on  account  of  the  long  distances. 
The  backs  of  the  seats  in  the  compartments  are  arranged 
in  such  a  way  that  they  can  be  Hfted  at  night,  and  thus 
there  are  two  sleeping-berths  in  the  first  class,  and  four  in 
the  second — two  lower  and  two  upper.  It  is,  however,  not 
advisable  to  reckon  on  this  free  accommodation,  but  to 
book  a  reserved  sleeping-berth  (platz-kart).  Sleeping-cars 
(spalni  vagon)  are  of  two  kinds.  The  so-called  government 
sleeping-car  (kazionny),  and  that  of  the  international  car 
wagon-Kt  (mejdunarodny),  which  is  more  expensive,  but 
more  comfortable,  being  of  the  same  kind  as  all  inter- 
national sleeping-cars  on  the  Continent.  In  both  kinds  of 
sleeping-cars,  pillows,  sheets,  blankets  and  towels  are  pro- 
vided, but  in  the  carriages  other  than  the  international 
they  are  charged  for,  and  should  be  ordered  as  soon  as  one 
gets  in  the  train,  in  case  of  shortage.  In  each  carriage 
there  is  a  steward  (provodnik)  who  arranges  the  bed,  clears 
the  compartments,  brushes  clothes  and  shoes,  and  takes 
tickets  for  the  night,  so  that  passengers  are  not  disturbed 
by  inspectors  (controllers).  In  international  carriages  the 
steward  often  speaks  foreign  languages. 

Express  trains  are  usually,  but  not  always,  provided 
with  dining-cars.  If  there  is  no  dining-car,  passengers  have 
their  meals  at  the  larger  stations,  where  the  train  stops  for 
half  an  hour,  or  longer. "  It  is  the  duty  of  the  guard  (kon- 
ductor)  to  tell  how  long  the  train  stops.  It  is  also  cus- 
tomary in  Russia  to  take  sandwiches,  boiled  eggs,  chicken, 
fruit,  chocolates,  etc.,  in  a  basket,  and  to  eat  in  the  com- 


22  COMMERCIAL  EUSSIA 

partment.  The  Russians  also  take  tea  and  sugar,  a  kettle 
and  glasses  or  enamel  cups.  The  steward  or  the  guard 
brings,  if  required,  boiling  water  (keepietok)  at  any  station, 
for  a  tip  of  10  or  20  kopecks.  It  will  be  found  very  handy 
to  have  an  excursion-basket,  with  vacuum  flask,  a  spirit 
lamp  and  other  accessories,  if  only  to  provide  refresh- 
ment for  the  sometimes  long  intervals  between  station 
meals. 

While  the  train  stops  at  a  larger  station,  passengers 
leave  their  compartments  in  charge  of  the  steward  or  guard, 
and  run  to  the  buffet.  Brealdast,  dinner  or  supper,  as  the 
case  may  be,  is  usually  waiting  for  them,  generally  con- 
sisting of  the  proverbial  "  tschi  "  or  cabbage  soup  and 
cutlets. 

Those  who  have  "  train  nerves,"  and  are  afraid  of  losing 
the  train,  can  have  light  refreshment,  such  as  sandwiches 
(zakouski),  with,  before  the  war,  a  glass  of  beer  (pivo), 
wine  and  various  liquors.  Their  fear  is,  however,  un- 
justified, as  there  are  three  warning  bells  before  the  train 
departs.  After  each  bell,  a  porter  comes  to  the  buffet  and 
waiting-rooms  in  the  station,  and  announces  the  fact  to  the 
passengers.  The  first  bell  need  not  disturb  one,  as  it  rings 
a  quarter  of  an  hour  before  the  departure  ;  the  second  bell 
is  rung  ten  minutes  later,  and  it  is  advisable  after  this 
warning  to  leave  the  restaurant  for  the  train,  as  the  third 
bell  is  followed  by  the  chief  guard's  whistle.  The  train 
starts  immediately.  To  avoid  mistakes,  it  is  useful  to  re- 
member the  number  of  the  car.  First-class  carriages  are 
painted  blue,  second  class  yellow,  and  third  green,  and  all 
carriages  are  numbered.  This  may  also  facihtate  matters 
when  the  train  changes  rails  and  its  position  while  the 
passengers  have  been  having  their  meal  in  the  refreshment- 
room. 

One  of  the  most  unpleasant  things  about  travelling  in 
Russia  is  changing  trains  (peiesadka).    In  some  cases  it  is 


TEAVBLLING  IN  RUSSIA  23 

necessary  to  wait  in  a  junction  for  six  or  even  twelve  hours, 
for  another  train.  It  is  particularly  tiresome  if  this  happens 
at  night.  Passengers  have  to  sit  on  the  chairs  and  benches 
in  the  waiting-room ;  those  who  hold  third  class-tickets 
very  often  go  into  the  first  and  second  and  third  class 
waiting-rooms,  and  thus  the  entourage  is  very  mixed. 
Little  children  cry,  dogs  run  about,  and  lusty  passengers 
snore  on  their  luggage  in  a  terrible  manner.  Still,  if  one^ 
can  look  on  the  humorous  side  of  things,  it  is  exceedingly 
interesting.  In  some  stations,  however,  there  is  a  barber 
who  attends  all  night,  bookstalls,  with  French  and  English 
books  and  postcards,  are  open,  and  very  often  also  stalls 
with  toys,  rustic  products,  etc.,  are  displayed  in  a  pic- 
turesque manner.  At  the  bookstalls  stamps  may  be  bought 
for  a  small  copper  extra,  telegrams  from  the  station  tele- 
graph office  may  be  sent  all  night,  and  the  buffet  (a  big 
dining  and  waiting  room  combined,  including  a  bar),  with 
its  dreamy  Tartar  waiters,  is  open  all  night.  The  same 
porter  who  took  the  luggage  from  the  previous  train  will 
take  it  at  the  proper  time  to  the  train  on  another  line,  no 
matter  how  long  the  passenger  may  have  to  wait,  and  then 
is  usually  content  with  a  tip  of  3d.  or  6d.  It  is  best,  while 
waiting,  to  tell  him  to  put  all  luggage  in  the  refreshment- 
room,  so  that  it  can  be  seen  while  the  traveller  has  his 
meals.  If  there  is  any  complaint,  a  special  book  is  kept  in 
the  waiting-room  for  the  purpose.  If,  however,  a  passenger 
prefers  to  make  a  verbal  complaint,  he  can  apply  to  the 
stationmaster  (nachalnik  stanzi).  The  stationmaster  can 
be  recognised  by  his  red  cap  of  the  same  shape  as  that  of 
the  Enghsh  officer,  and  he  wears  it  only  when  on  duty. 
Should  waiting  for  another  train  happen  during  the  day- 
time, the  passenger  can  leave  his  luggage  in  charge  of  his 
porter,  and,  after  inquiring  about  the  time  at  his  disposal, 
can  visit  the  town,  or  take  a  stroll  in  the  country-side,  as 
the  case  may  be. 


24  COMMERCIAL  RUSSIA 

When  one  travels  in  the  western  part  of  Russia,  where 
the  Jewish  population  represents  a  considerable  per- 
centage, it  is  well  to  remember  that  the  best  time  for 
travelling  is  from  Friday  to  Saturday,  as  at  this  time 
Russian  Jews  only  travel  under  the  greatest  compulsion  ; 
on  such  lines  as  Vilna-Warsaw  the  traffic  drops  at  that 
time  by  more  than  one-half.  If,  however,  the  train  is  over- 
crowded, second-class  travellers  can  demand  to  be  trans- 
ferred to  a  first-class  compartment  without  additional  fee. 
In  such  cases  a  small  tip  to  the  guard  would  be  found  very 
useful.  It  sometimes  happens  that  after  the  guard  has 
been  tipped,  a  quite  empty  compartment  wiU  be  discovered 
and  unlocked. 

Nearly  all  the  Russian  rivers  are  navigable  for  hundreds 
of  miles,  and  regular  lines  of  excellent  steamboats  ply  on 
them,  conveying  both  passengers  and  freight.  In  many 
cases  these  cover  districts  not  traversed  by  railways,  while 
in  others,  such  as  the  Volga,  the  principal  towns  are  also 
reached  by  rail.  The  Volga  is  navigable  for  over  2000  miles, 
from  Tver,  midway  between  Petrograd  and  Moscow,  to 
Astrakhan  on  the  Caspian  Sea,  and  the  steamer  stops  at 
such  important  towns  as  Nijni-Novgorod,  Kazan,  Samara, 
Saratoff  and  Tsaritzin.  It  is  a  favourite  summer  holiday 
trip  with  the  Russians,  the  boats  being  built  on  the  style 
of  those  on  the  Hudson  river,  with  every  cabin  looking  out 
on  to  the  promenade  deck.  They  are  wonderfully  clean,  as 
mashoot,  a  refuse  of  petroleum,  is  used  instead  of  coal,  and 
is  conveyed  to  the  furnaces  by  pipes  from  a  tank.  Ex- 
cellent meals  are  furnished  at  very  moderate  cost,  and  the 
fares  are  quite  reasonable.  Two  or  three  different  com- 
panies run  regular  hues  of  steamers,  each  with  a  daily 
service,  and  as  three  to  four  hours  is  allowed  at  each  town, 
business  can  very  well  be  combined  with  pleasure,  while 
the  time  taken  is  not  much  more  than  it  would  be  by  rail, 
if  all  the  towns  were  visited.    The  scenery  is  perhaps  not 


TRAVELLING  IN  EUSSIA  25 

very  interesting  in  most  parts,  but  this  is  amply  compen- 
sated for  by  the  scenes  when  the  boat  stops,  and  by  the 
varjring  character  of  the  steerage  passengers. 

From  Astrakhan  one  can  change  into  the  larger  boats  of 
the  Caspian  Sea,  and  take  the  400-mile  trip  to  Baku  in 
about  two  days.  Tributaries  of  the  Volga  run  in  other 
directions,  and  their  boat  services  make  connection  with 
the  Volga  at  different  points.  In  some  parts,  indeed,  the 
only  communication  is  by  steamer,  as  for  instance,  from 
Kotlas  to  Archangel,  unless  one  makes  a  very  long  detour. 
The  Don,  leading  to  the  Sea  of  Azov,  and  the  Dnieper  to 
Nikolaiev  and  Kherson,  have  also  excellent  services. 
River  navigation  is,  however,  confined  to  the  summer 
months,  as  all  are  practically  frozen  over  in  winter. 

It  is  different,  however,  with  the  Siberian  rivers.  There 
are  many  regions  which  in  summer  can  be  reached  only  by 
steamer.  Such  rivers  as  the  Obi,  Yenisei  and  Lena  traverse 
a  country  where  coal,  gold,  iron  and  other  products  are 
found  in  abundance.  Moreover,  in  midsummer  these  rivers 
are  used  by  steamers  which  reach  the  Arctic  Ocean  and  the 
open  sea.  But  again,  this  navigation,  though  of  great 
importance  for  a  merchant  and  explorer  in  Siberia,  is  in  the 
hands  of  private  companies  and  steamship  owners,  who, 
in  most  cases,  have  their  own  rules  and  their  own  charges, 
and  there  is  no  uniform  system  as  is  the  case  with  the  rail- 
ways. The  traveller  who  intends  to  go  to  Tobolsk  or  Semi- 
palatinsk,  to  Yeniseisk  or  Minusinsk  will  find  in  Omsk, 
Krasnoyarsk  or  Irkutsk,  steamers  suitable  for  his  purpose. 
The  charges  are  very  low  ;  for  example,  the  fare  for  the 
journey  from  Omsk  to  Tobolsk,  which  represents  747  miles 
and  occupies  4-5  days,  is  8  roubles  (16s.). 

Vieing  in  importance  with  traveUing  by  steamer  is 
traveUing  by  coach.  Indeed,  it  is  important  not  only  in 
Siberia,  but  in  European  Russia  also,  on  account  of  the 
vast  regions  where  railways  do  not  exist.     There  are 


26  COMMEECIAL  RUSSIA 

several  classes  of  roads — according  to  their  width,  their 
construction  and  their  administration.  Not  many  of  them 
are  kept  by  the  State.  The  majority  of  high  roads  are 
under  the  administration  of  the  Zemstvos.  It  is  one  of  the 
great  tasks  of  this  local  government  to  keep  roadways  in 
good  condition.  There  is  an  opinion  in  western  Europe 
that  the  Russian  roads  are  very  bad,  but  it  is  unjust,  at 
least  as  regards  the  high  roads  under  the  administration 
of  the  Zemstvos  and  the  local  authorities,  and  it  may  be 
apphed  only  to  side  roads  under  private  administration. 
Coaching  in  Russia,  especially  long  distances,  is  carried  on 
by  post-coaches  (potchta).  A  traveller  usually  journeys 
from  one  post-station  to  another  in  a  coach  with  a  hood 
(tarantass).  Travelling  in  Siberia,  where  the  journey  often 
occupies  several  weeks,  the  Russian  mail-coach  is  arranged 
in  such  a  mamier  that  the  passenger  travels  lying  down. 
In  those  parts  of  Russia  where  coaching  represents  shorter 
distances,  travellers  journey  sitting.  With  three  horses 
to  a  carriage  (troika)  is  the  favourite  mode  of  travelling. 
In  winter  the  same  three  horses  draw  sledges  (sani). 
Travellers  arriving  at  the  posting-stations  ahght,  have  tea 
and  meals  while  the  horses  and  vehicles  are  being  changed. 
Those  who  are  in  haste  can  travel  day  and  night ;  those 
who  have  more  time  wait  at  the  posting-stations.  Pro- 
visions, soap  and  towels  are  still  more  important  than  is 
the  case  with  the  railway  traveller.  It  must  be  remem- 
bered that  at  many  posting-stations  the  only  thing  of 
which  one  can  be  certain  is  the  samovar,  full  of  boihng 
water.  As  to  tea,  sugar,  biscuits,  etc.,  travellers  have  their 
own.  Coaching,  being  particularly  important  in  Siberia, 
is  better  organised  there  than  perhaps  in  any  other  part  of 
Russia.  Siberian  horses  are  famous  for  their  swiftness  and 
hardiness.  They  are  capable  of  running  100  versts,  doing 
20  versts  per  hour.  They  must  be  harnessed,  and  the 
passengers  must  get  into  the  coach  with  closed  gate  in  front 


TEAVELLING  IN  RUSSIA  27 

of  the  horses.  As  soon  as  the  gate  is  opened,  there  is  no 
power  to  stop  them  ;  they  shoot  from  the  spot  like  a  whirl- 
wind, and  the  coachman  (yamschik)  can  only  stop  them 
after  they  have  run  some  20  miles.  The  middle  horse 
carries  a  large  bell,  the  sound  of  which  rings  far  off,  and  has 
a  peculiar,  soothing  effect.  The  hardship  of  the  journey 
is  amply  repaid  by  the  beautiful,  wild  scenery  and  fresh 
air.  In  those  parts  of  Siberia  where  travelling  is  unsafe  on 
account  of  wandering  outlaws  several  vehicles  travel  in 
company.  The  fares  for  the  coaching  are  comparatively 
low,  being  f  farthing  per  verst  per  horse.  In  addition  to 
this,  a  small  charge  is  made  at  the  stations.  There  is  also 
a  still  cheaper  and  a  very  fast  manner  of  coaching  in 
Siberia — "  with  gold."  Unfortunately  it  is  not  always 
available.  Gold  from  distant  Siberian  mines  is  sewn  in 
leather  sacks  of  sausage  shape,  and  then  riveted  between 
grooved  logs  of  wood  inside  the  passenger  vehicle.  Travel- 
lers in  this  manner  are  charged  less,  and  are  welcomed  for 
the  sake  of  the  safety  they  confer.  Many  vehicles  in  com- 
pany thus  travel  with  terrific  speed.  In  European  Russia 
post-horses  are  not  so  swift,  vehicles  not  so  convenient 
and  travelHng  is  more  tiresome.  Posting  here  is  often 
kept  by  a  local  landowner  or  farmer  for  a  yearly  sum  of, 
say,  £100,  for  which  he  is  obliged  to  convey  State  and 
other  officials  free  of  charge,  while  other  people  pay  a  fare 
officially  laid  down.  In  this  case,  as  everywhere  else  in 
Russia,  the  driver  expects  a  small  tip  "  for  tea,"  as  they 
say.  This  is  so  characteristic  of  Russia  that  the  Russians 
themselves  say  that  when  the  Lord  created  different 
nations,  every  nation  was  grateful  and  enjoying  life,  except 
the  Russian  moojik.  God  then  approached  the  Russian 
moojik  and  inquired  of  him  why  he  was  so  sad  after  his 
creation.  "  Verily,  verily,  Your  Grace,"  he  rephed, 
*'  You  have  created  me,  but  will  you  not  give  me  a  tip 
for  it?" 


28  COMMERCIAL  RUSSIA 

Whilst  speaking  of  travelling  in  Russia,  a  few  words  may 
be  added  on  motoring.  There  is  no  doubt  that  the  high 
roads  are  sufficiently  well  kept  for  this  mode  of  travelling, 
as  the  great  motor  races  between  Paris  and  Pekin  have 
proved.  The  long  winter,  however,  and  the  deep  snow 
only  make  it  practicable  in  summer.  Moreover,  human 
sympathy  being  scarce  in  many  parts,  any  accident  or 
breakdown  makes  the  position  desperate.  Petrol  cannot 
be  replenished  in  villages  or  small  towns.  But  this,  no 
doubt,  will  soon  be  improved  with  the  general  development 
of  Russia.  Firmer  motor  routes  are  still  on  a  very  small 
scale.  For  instance,  there  were  motor  buses  running  from 
the  Austrian  frontier  to  Lubin  in  Poland  to  convey  passen- 
gers between  Lemberg  and  Warsaw.  The  Russian  Govern- 
ment entertained  a  serious  scheme  for  opening  up  motor 
traffic  between  Petrograd  and  Archangel.  This,  of  course, 
would  be  an  important  development  of  motoring,  in  a 
country  in  which,  until  very  recently,  there  was  not  a 
single  motor  factory.  And  yet,  Russia  being  a  fiat  country 
with  long  distances,  opens  up  enormous  possibilities  for 
motoring  and  aviation.  CycUng  and  motor-cycling  can, 
of  course,  have  only  local  significance.  Those  who  wish  to 
cycle  in  Russia  must  pass  an  examination  and  receive  a 
permit. 

Although,  even  in  Eui-opean  Russia,  there  are  regions 
larger  than  the  area  of  England  that  are  untraversed  by 
railway  lines,  almost  all  large  towns  and  commercial 
centres  are  connected  by  the  railway  systems.  But  many 
thousands  of  versts  of  Russian  railways  are  not  very  im- 
posing if  we  take  into  consideration  the  vastness  of  the 
country.  European  Russia  has  62,910  kilometres  of  rail- 
way, Asiatic  Russia  11,700  kilometres  ;  that  is,  there  are 
in  Russia  74,610  kilometres.  Great  Britain,  which  is 
seventy  times  smaller,  has  37,330  kilometres,  or  half  of  the 
Russian  railways  ;    the  United  States,  which  are  a  httle 


TRAVELLING  IN  RUSSIA  29 

more  than  one-third  of  the  Russian  Empire,  have 
409,940  kilometres ;  that  is,  five-and-a-half  times  more 
than  Russia.  If  we  represent  Britain's  railway  system 
relatively  to  area  by  120,  that  of  the  United  States  will  be 
43,  that  of  European  Russia  will  be  11,  and  that  of  Siberia 
only  1. 

There  are  three  most  important  junctions  from  which 
railways  run  in  various  directions,  viz.  Moscow,  Petrograd 
and  Warsaw.  Of  these,  Moscow  is  the  most  important. 
Ten  railway  Hues  connect  Moscow  with  other  Russian 
towns.  Through  this  part  of  Russia  communication  exists 
between  western  Europe  and  Siberia,  Turkestan,  China 
and  Japan.  The  junction  Hes  on  the  route  between  Arch- 
angel and  Odessa,  Petrograd  and  the  Caucasus.  Next  in 
importance  as  a  centre  is  Petrograd,  and  then  Warsaw. 
During  the  Great  War,  Petrograd  has  grown  in  importance 
as  a  railway  centre,  since  Russian  traffic  with  France  and 
England  has  been  carried  on  through  the  Finland  and 
the  Murman  railways. 

The  majority  of  Russian  railways  belongs  to  the  Govern- 
ment ;  as  much  as  69  %  is  the  property  of  the  State,  the 
rest  of  the  railways  are  run  by  various  private  companies. 
They  are  all,  however,  under  Government  control,  and  the 
influence  of  shareholders  is  practically  limited  to  receiving 
their  dividend.  Even  the  directors  of  these  private  com- 
panies are  considered  by  the  State  as  Government  officials, 
and  are  responsible  to  the  Minister  of  Ways  and  Com- 
munications. Ultimately  all  private  railways  become  the 
property  of  the  State.  The  concession  to  build  and  run  a 
railway  is  issued  for  a  limited  time  only,  usually  for  81 
years,  after  which  the  railway  is  the  property  of  the  State, 
and  the  shareholders  have  no  compensation  whatever.  It 
is  quite  obvious  that  such  a  law  is  unattractive  to  investors, 
and  cripples  individual  enterprise.  Moreover,  it  was 
formerly  very  difficult  to  obtain  a  railway  concession  in 


30  COMMERCIAL  RUSSIA 

Russia,  and  many  formalities  would  hamper  the  pro- 
ceedings. In  many  cases,  ministers  of  autocratic  Russia 
had  to  be  bribed  by  hundreds  of  thousands  of  pounds.  If 
such  bribery  was  not  paid  directly,  there  was  an  indirect 
way.  For  instance,  one  of  the  Ministers  of  Ways  and  Com- 
munications issued  a  concession  on  the  condition  that  all 
necessary  rails  and  engines  would  be  purchased  through 
the  firm  in  which  he  had  an  interest.  The  War  and  the 
Russian  Revolution  have  changed  the  situation  entirely. 
Russia,  which  suffered  from  her  enemies  to  such  a  great 
extent  on  account  of  the  shortage  of  her  railway  system, 
not  only  intends  to  develop  it,  but  she  is  actually  carrying 
on  enormous  work,  in  spite  of  the  terrible  conditions. 
Of  these  achievements,  the  Murman  railway  is  no  doubt 
the  most  important.  This  railway  has,  however,  very 
little  importance  for  a  traveller.  It  is  very  unUkely  that  a 
passenger  from  England  would  choose  this  lengthy  route 
instead  of  taking  the  quicker  hues  of  communication. 
Notwithstanding  this,  the  Murman  railway  will  always 
have  its  importance  as  a  new  route  for  goods  traffic. 

In  the  larger  cities  the  hotels  vie  with  the  best  in  Eng- 
land or  other  parts  of  Europe.  But  Russia  is  a  country  of 
extremes.  There  is  nothing  medium.  As  soon  as  one  gets 
to  the  smaller  towns  the  hotel  accommodation  is  terrible. 
The  best  rooms  are  more  distinguished  by  size  than  any- 
thing else.  A  writing-desk,  however,  always  forms  part 
of  the  equipment,  and  also  a  washstand,  with  a  tank  from 
which  the  water  trickles  into  the  basin,  and  thence  to  the 
bucket  below.  There  is  no  plug  to  the  basin,  as  the 
Russian  beheves  in  washing  in  running  water,  though  how 
he  manages  to  do  so  with  such  a  tiny  flow  of  water  I 
could  never  discover.  Baths  are  practically  unknown,  as 
Russians  patronise  the  orthodox  steam  bath,  which  is 
found  in  every  Russian  town  and  village,  at  least  once  a 
week.   Moreover,  as  he  usually  carries  his  bed-Unen,  towels, 


TRAVELLING  IN  RUSSIA  31 

etc.,  when  travelling,  considering  it  very  improper  to  use 
those  that  have  been  used  by  others,  even  if  clean,  these 
articles  have  to  be  specially  ordered  in  the  smaller  hotels, 
and  one's  bill  includes  a  host  of  different  items — towels, 
pillow-cases,  sheets,  etc.,  as  well  as  the  charges  for  room 
and  meals. 


Ill 

THE  COUNTRY 

Its  size — Its  physical  features — Rivers — Lakes — Forests— Climate — Northern 
Russia — The  Baltic  provinces— The  Donetz  Basin — The  Urals— Popula- 
tion of  cities. 

IT  is  impossible  to  properly  consider  Russia  and  its  possi- 
bilities without  taking  into  account  its  vast  area  of 
nearly  nine  million  square  miles,  or  about  one-^sixth  of  the 
total  land  surface  of  the  earth.  There  is  no  real  dividing 
line  between  European  and  Asiatic  Russia.  It  is  one  con- 
tiguous country,  speaking  the  same  language,  having  the 
same  cHmatic  conditions.  Siberia  is  more  akin  to  Russia 
in  Europe  than  is  the  Caucasus.  The  Ural  Mountains  are 
popularly  supposed  to  be  the  dividing  hne  between  Europe 
and  Asia,  but  there  are  thousands  of  square  miles  of  Russia 
in  Europe  beyond  the  Urals.  In  fact,  there  is  no  definite 
chartered  boundary  on  the  east  between  Europe  and 
Siberia. 

The  Russian  Empire  is  more  than  twice  the  size  of  the 
whole  of  Europe ;  it  is  larger  than  the  United  States, 
Canada~and  India  combined.  It  could  hold  more  than 
double  the  present  population  of  the  whole  world  if 
peopled  in  the  same  proportion  of  density  as  either  the 
United  Kingdom  or  Germany.  The  Caucasus  is  half  as 
large  again  as  the  United  Kingdom,  and  very  nearly  as 
large  as  Germany.  Poland  is  almost  exactly  the  same 
size  as  England,  the  Baltic  Provinces  are  larger.  When  it 
is  11.20  in  the  morning  in  one  part  of  Russia  it  is  6.46  in 

32 


THE  COUNTRY  33 

the  evening  in  another.  It  is  6,400  miles  by  rail  from  the 
Russian  western  border  to  Vladivostok,  a  distance  as  great 
as  across  the  Atlantic  Ocean  and  the  American  continent 
from  England  to  San  Francisco.  It  is  2,250  miles  by  rail 
from  Archangel  to  Baku,  which  is  300  miles  more  than 
from  London  to  Moscow  by  the  shortest  route  through 
Germany.  Siberia  is  nearer  London  than  Warsaw  is  to 
Vladivostok.  It  is  further  from  Moscow  to  Odessa  than  it 
is  from  London  to  Berlin,  and  from  Warsaw  to  the  Urals 
than  from  England  to  Petrograd.  These  rough  compari- 
sons will  give  a  better  idea  of  the  extent  of  the  country 
than  mere  tables  of  statistical  figures. 

Russia  is  pre-eminently  a  flat  country.  In  fifteen 
thousand  miles  of  travel  I  did  not  come  across  a  tunnel. 
The  Ural  Mountains  are  hardly  worth  the  name.  They  are 
only  a  few  hundred  feet  above  sea-level,  and  rising  from  a 
tableland,  do  not  appear  to  be  mountains  at  all.  The 
railway  goes  over  them  and  one  does  not  notice  any  cHmb- 
ing.  Further  north,  beyond  the  railways,  they  are  higher. 
Practically  the  only  mountains  in  Russia  are  those  dividing 
the  Caucasus,  and  these  are  the  highest  in  Europe,  Mount 
Elbruz  being  18,526  feet  high,  and  Mount  Kazbek  16,546 
feet.  There  is  a  mihtary  road  from  Tiflis  to  Vladikavkaz 
across  these  mountains  about  150  miles  long,  and  reaching 
to  a  height  of  7,000  feet,  and  this  trip  by  carriage  with 
relays  of  horses  is  one  of  the  most  delightful  I  took. 

The  Russian  plateau  runs  from  Poland  and  the  Baltic 
Sea  on  the  north-west,  and  from  the  Carpathians  and  the 
Black  Sea  on  the  south-west,  and  spreads  as  far  as  the 
Arctic  Ocean  on  the  north  and  the  Pacific  Ocean  on  the 
east.  It  is  partially  interrupted  by  the  Ural  Mountains. 
Of  course,  we  ought  not  to  imagine  that  for  a  traveller 
Russia  would  everywhere  appear  as  flat  as  a  table.  In 
many  regions  it  has  picturesque  hill  scenery,  as  in  the 
region  where  Moscow  is  situated,  for  instance.     On  the 


34  COIVIMEECIAL  RUSSIA 

other  hand,  there  are  mountains,  such  as  the  Caucasus 
and  those  of  the  Northern  Himalayas,  in  comparison 
with  which  the  Alps  are  mere  hills. 

Russia  is,  however,  a  country  of  great  jivers,  many  of 
them  navigable  for  many  hundreds  of  miles.  In  Russia 
in  Europe  alone  there  are  five  rivers  over  a  thousand  miles 
long,  including  the  Volga,  which  is  2,110  miles  in  length, 
and  navigable  for  nearly  2,000  miles.  There  are  thirteen 
or  fourteen  rivers  over  five  hundred  miles  long,  and  most 
of  them  are  navigable  for  the  greater  part  of  their  length. 

Thus  through  this  Russian  plain  flow  great  rivers  of 
such  length  that  they  compare  with  the  longest  in  the 
world.  In  the  present  chapter,  however,  that  part  of  the 
Russian  Empire  which  is  known  as  European  Russia  is  being 
considered,  a  special  chapter  being  reserved  for  Siberia. 

The  largest  European  river,  the  Volga,  is  entirely  in 
Russia.  It  flows  into  the  Caspian  Sea,  the  largest  "  lake  " 
in  the  world.  It  is  the  most  important  of  all  the  Russian 
rivers,  and  the  Russians  cherish  towards  it  a  particular 
sentiment,  and  very  often  call  it  "  Matushka  Volga  " 
(Mother  Volga).  Indeed,  the  Russian  moojik  attributes 
the  BibHcal  flood  to  the  overflow  of  the  Volga.  It  has  its 
soui'ces  in  the  Valdai  Hills  ;  it  flows  eastwards  through  a 
soil  of  sand  and  clay,  then  turns  sharply  southwards,  and 
traverses  the  richest  agricultural  part  of  Russia,  that  of 
the  so-called  "  black  earth."  Near  the  Caspian  Sea  it  is 
below  sea-level,  as  it  flows  through  the  Caspian  depression. 
At  the  point  where  this  depression  begins  it  approaches 
very  closely  another  river  situated  more  to  the  west, 
namely,  the  Don.  The  Don  is  also  navigable,  its  upper 
part  traverses  the  ''  black  earth,"  while  its  lower  part 
flows  amongst  chalk  and  sand.  The  third  most  important 
Russian  river  which  flows  southwards  is  the  River  Dnieper, 
one  time  a  frontier  river  between  the  ancient  kingdom  of 
Poland  and  Russia.    It  draws  its  waters  from  the  Pinsk 


THE  COUNTRY  35 

marshes,  but  its  navigation  is  hampered  by  cataracts. 
All  these  three  rivers  are  of  great  importance  to  Russia, 
because  they  constitute  ways  of  navigation  across  the 
richest  part  of  the  Russian  Empire.  Rivers  which  have 
their  outlets  in  the  Baltic  and  White  Seas  are  much 
shorter,  and  their  importance  can  hardly  be  compared 
with  those  on  the  south.  The  Vistula,  the  main  river  of 
Poland,  would  no  doubt  compete,  as  regards  importance, 
with  the  southern  rivers,  as  it  crosses  thickly  populated 
and  very  developed  regions,  but  being  politically  divided 
into  three  sections,  viz.  Austrian,  Russian  and  German, 
it  is  deprived  of  its  advantages.  The  same  is  the  case 
with  the  River  Niemen.  In  this  respect,  the  Dvina  of  the 
Baltic  and  the  North  Dvina  of  the  White  Sea  are  better 
situated.  The  latter,  however,  crosses  the  poorest  parts 
of  northern  Russia.  The  Neva,  very  short,  but  very  wide 
and  deep,  derives  its  importance  from  the  fact  that  it 
connects  the  Baltic  Sea  with  the  large  Russian  lakes  of 
Ladoga  and  Onega,  and  that  the  capital  of  Russia  is  built 
on  its  embankment. 

Apart  from  the  lakes  mentioned,  there  are  many  others, 
and  this  part  of  Russia  is  sometimes  called  the  Russian 
lake-district.  In  reality,  these  lakes  commence  in  East 
Prussia,  they  appear  in  the  Baltic  Provinces,  then  in  the 
governments  of  Pskoif ,  Novgorod,  Petrograd,  and  through 
almost  all  Finland. 

The  far  northern  part  of  Russia  is  constituted  of  barren 
tundras.  The  climate  of  excessive  severity  permits  no 
trees  to  grow,  and  the  land  consists  of  stony  regions  on  the 
north-west,  which  spread  southwards  through  the  whole 
of  Finland.  The  north-eastern  shores  of  the  Arctic  Ocean 
are  composed  of  frozen  marshes.  A  little  southwards 
pine  forests  commence,  and  a  line  drawn  from  the  top  end 
of  the  Baltic  Sea  to  Archangel  and  thence  as  far  as  the 
Ural  Mountains  represents  the  northern  hmits  of  rye 


36  COMMEECIAL  RUSSIA 

cultivation  ;  while  the  limits  of  wheat  terminate  on  a  line 
drawn  across  southern  Finland  and  the  Lake  of  Ladoga 
eastwards.  The  Hmits  of  oak  represent  a  Hne  drawn  from 
Petrograd  to  Kazan.  A  httle  more  to  the  south,  parallel 
to  it,  begins  the  limit  of  fruit  trees.  Forests  are  the  main 
feature  of  the  northern  half  of  Russia,  while  the  steppes 
are  features  of  the  southern.  This  is  the  result  both  of 
soil  and  cHmate.  South-eastern  Russia  is  not  only  warmer, 
but  dryer  than  south-western  Russia.  Its  soil  consists  not 
of  clay,  stone  or  sand,  but  of  the  richest  humus  soil,  suffi- 
cient to  raise  enough  cereals  to  feed  not  only  the  whole  of 
Russia,  but  the  whole  of  Europe. 

The  Russian  climate  is  essentially  a  continental  chmate. 
The  winters  are  severe  and  the  summers  are  very  hot. 
While  in  eastern  Russia  mercury  is  often  frozen  in  winter, 
in  the  same  part  the  grass  is  burnt  by  the  heat  of  the  sun 
in  summer.  There  is  practically  no  spring  or  autumn. 
The  transition  from  winter  to  summer  and  from  summer 
to  winter  takes  only  a  few  weeks,  and  barren  trees  are  in 
that  time  covered  with  fohage.  Even  the  poorest  of  the 
Russian  peasantry  have  to  wear  fur  coats  in  winter,  while 
in  summ^i^rthe  same  people  have  only  hnen  attire.  Bare- 
footed women,  with  only  one  long,  loose  robe,  cut  the  corn, 
and  the  men  wear  Hnen  shirts  and  pantaloons.  Of  course, 
the  chmate  of  Poland  is  much  milder,  and  resembles  that 
of  Scotland  and  northern  England.  Russia,  however,  has 
her  own  Riviera,  with  a  beautiful  Mediterranean  chmate. 
Indeed,  the  Crimea  can  compete  with  Italy  in  its  vineries, 
its  scenery,  and  its  mildness  of  chmate,  and  is  the  summer 
resort  of  the  wealthy  classes. 

The  steppe  regions,  the  home  of  the  Cossacks,  are  in 
summer  exceedingly  hot  for  Europe.  They  are  not,  how- 
ever, so  cold  in  winter  as  the  central  regions.  The  steppes 
can  be  compared  to  the  American  prairies.  At  one  time 
they  were  nothing  else  but  a  sea  of  grass.    Now,  however, 


THE  COUNTRY  37 

they  are  being  more  and  more  cultivated,  and  with  the 
railways  traversing  them,  they  are  losing  their  former 
appearance. 

Eussia  is  a  country  very  rich  in  natural  resources. 
Probably  it  is  the  only  country  in  Europe  which  is  capable 
of  being  entirely  self-supporting.  It  has  nearly  all  the  raw 
material  requisite.  It  is  often  considered  an  entirely  agri- 
cultural country,  but  this  view  is  only  correct  to  a  certain 
extent.  If  agriculture  predominates,  this  depends  not  so 
much  on  the  physical  features  of  Eussia  as  on  the  Eussian 
people,  who  are  only  now  beginning  to  do  what  we  have 
been  doing  for  a  hundred  years. 

The  country  north  of  the  line  of  railway  from  Petro- 
grad  to  Ekaterinburg  on  the  border  of  Siberia  and  passing 
through  Vologda,  Viatka  and  Perm,  and  comprising  the 
northern  part  of  European  Eussia,  has  no  town  of  any 
size  whatever,  with  the  exception  of  Archangel.  It  is 
practically  an  unexplored  country  of  virgin  forests  of 
almost  incalculable  wealth,  and  is  the  property  of  the 
State.  In  fact,  the  Eussian  Government  is  probably  the 
richest  in  material  resources  in  the  world,  holding  in  its 
own  name  as  apart  from  its  citizens  thousands  of  square 
miles  of  land  rich  in  timber  and  minerals,  and  adapted 
for  agricultural  purposes.  The  vast  resources  of  the  Tsar 
and  the  Eoyal  Family,  hitherto  held  by  them  in  a  semi- 
official capacity,  are  also  now  the  property  of  the  State. 
The  timber  of  this  region  is  cut  down  in  winter,  con- 
veyed in  summer  by  rivers  to  the  White  Sea,  and  then 
shipped  to  distant  lands. 

Turning  further  to  the  south,  we  find  the  Baltic  Pro- 
vinces and  the  Lithuania  countries,  which,  while  they 
cannot  boast  of  gold,  coal  or  iron,  produce  the  finest  flax. 
In  the  immediate  neighbourhood  of  Lithuania  Hes  Eussian 
Poland.  It  comprises  one  of  the  great  manufacturing 
centres  of  Eussia.    The  Moscow  district  has  hundreds  of 


38  COIVIMEECIAL  RUSSIA 

textile  and  scores  of  other  factories  within  a  radius  of 
200  miles,  and  is  to-day  the  greatest  centre  of  Russia's 
manufacturing  activity,  many  of  the  Baltic  and  Pohsh 
factories  having  moved  to  this  district.  The  south-western 
part  of  Poland  has  rich  coal  mines  extending  from  Silesia. 
There  is  also  zinc  and  iron.  In  the  town  of  Lodz,  the  Man- 
chester of  Poland,  are  situated  enormous  textile  factories. 
Next  in  natural  resources  is  the  region  watered  by  the 
River  Don. 

In  the  Donetz  basin,  north  of  the  Sea  of  Azov,  are  found 
coal  and  iron,  and  some  of  the  districts  with  their  mines, 
blast  furnaces  and  iron  and  steel  works,  vie  in  importance 
with  the  great  industrial  centres  of  this  country. 

During  the  Great  War  this  region  has  been  the  main 
source  of  Russian  iron  and  coal,  so  indispensable  to  the 
production  of  munitions.  From  here  trains  loaded  wdth 
coal  have  been  running  to  Moscow  and  Petrograd.  Thus 
it  has  become  the  most  important  centre  of  Russian  pro- 
ductive power.  Northward  from  the  Donetz  basin  in 
central  Russia  there  is  also  an  abundance  of  cpal  and  iron 
in  regions  passing  from  south  to  north  round  Moscow. 

On  the  borders  of  Siberia  are  the  Ural  Mountains,  with 
Ekaterinburg  as  their  centre,  and  branching  out  for 
some  hundreds  of  miles  with  railways  specially  constructed 
for  the  purpose,  are  the  noted  mines  of  gold,  silver, 
platinum  and  other  metals. 

The  resources  of  these  regions  are  not  only  unexplored 
to  their  fullest  extent,  but  even  they  have  not  yet  been 
thoroughly  investigated.  Suffice  it  to  say  that  there  is 
coal  on  the  surface,  and  that  there  are  entire  hills  of 
iron  ore. 

Only  the  more  precious  minerals,  such  as  gold,  platinum 
and  copper,  as  well  as  precious  stones,  are  mined  to  any 
extent.  Unhmited  possibilities  lie  in  the  future  for  enter- 
prising men.     The  present  difficulties  in  regard  to  the 


THE  COUNTRY  3& 

Ural  district  lie  mainly  in  the  lack  of  communication. 
With  the  general  progress  railways  will  be  constructed, 
and  those  who  may  happen  to  be  in  possession  of  the 
richest  of  the  Urals  before  such  time  will  make  their 
fortunes. 

The  Caucasus  is  the  name  given  to  the  peninsula  about 
the  size  of  France  lying  between  the  Caspian  Sea  on  the 
east  and  the  Black  Sea  and  the  Sea  of  Azov  on  the  west. 
It  is  generally  included  in  Europe,  though  it  strictly 
belongs  to  Asia,  and  a  century  ago  a  good  part  of  it  be- 
longed to  Persia.  It  is  divided  into  two  parts  by  the 
Caucasian  Mountains,  a  range  nearly  three  hundred  miles 
long  and  the  highest  in  Europe.  Communication  is  made 
between  the  northern  and  southern  halves  by  a  railway 
skirting  the  shore  to  Baku,  whence  it  comes  back  to 
Tiflis  in  the  southern  part.  The  celebrated  Georgian 
military  road,  about  one  hundred  and  fifty  miles  long, 
traverses  the  mountains  and  comes  out  at  Vladikavkaz, 
the  most  southern  town  of  the  northern  half  of  the 
Caucasus. 

The  Caucasus  is  most  interesting  on  account  of  its 
physical  features,  the  magnificent  mountain  scenery,  its 
spas  with  their  curative  mineral  waters,  its  sixty-seven 
tribes  and  over  one.  hundred  languages  and  dialects, 
its  heterogeneous  collection  of  Armenians,  Circassians, 
Georgians,  Tartars,  Persians,  Kurds,  Jews,  and  Greeks,  as 
well  as  Russians,  and  its  bizarre  towns  with  their  Eastern 
bazaars. 

In  natural  resources  it  has  abundance  of  silver,  lead, 
copper,  zinc,  bismuth,  nickel,  mercury,  manganese,  iron, 
antimony,  gold,  sulphur,  graphite,  coal,  peat,  petroleum 
oil,  asphalt,  common  salt,  sodium  carbonate,  glauber 
salts,  copper  and  iron  sulphates,  gypsum,  marble,  building 
stone,  serpentine,  cement  stone,  chalk,  fire-clay,  kerosene, 
hthographic  stone,  mill  stone,  asbestos,  red  oxide,  ochre 


40  COMMERCIAL  RUSSIA 

and  other  products,  few  of  which  have  been  worked,  with 
the  exception  of  manganese  and  petroleum.  The  northern 
district  is  very  largely  devoted  to  agriculture,  although 
coal,  cement  and  glauber  salts  from  the  lakes  are  com- 
paratively recent  industries,  as  is  also  the  oilfield  of  the 
Maikop  district.  In  the  south  the  principal  oilfield  is  that 
of  the  Baku.  There  are,  however,  some  large  cotton  mills 
in  the  neighbourhood  of  Petrovsk  and  Derbent. 

Some  of  these  districts  will  probably  have  autonomous 
government,  but  for  the  purpose  of  commercial  relations 
the  situation  will  be  practically  unaltered.  In  fact,  the 
concentration  of  effort  in  developing  their  agricultural 
and  mineral  resources  will  be  aU  to  the  good. 

Apart  from  this  wealth,  there  is  an  abundance  of 
animals,  such  as  foxes,  bears,  beavers  and  sables,  which 
supply  the  European  market  with  skins.  Unfortunately, 
they  have  been  sent  in  the  rough  state  to  Western  Europe, 
chiefly  to  Germany,  and  then  dressed  in  Leipzig  and  sold 
in  London  and  elsewhere.  The  Russian  rivers  and  lakes 
have  an  abundance  of  fish  of  the  greatest  dehcacy. 

It  is  so  well  known  and  so  often  stated  that  the  large 
percentage  of  Russians  are  peasants,  or  engaged  in  agri- 
culture, that  we  are  apt  to  overlook  the  fact  that  twenty- 
five  millions  of  Russians  Uve  in  towns.  This  is  equal  to 
more  than  one  half  of  the  population  of  the  United  King- 
dom. There  are  over  one  hundred  and  twenty  towns, 
each  with  a  population  of  over  twenty-five  thousand 
inhabitants,  as  compared  with  about  two  hundred  in  this 
country.  Both  Petrograd  and  Moscow  have  normal  popu- 
lations twice  the  size  of  any  town  in  Great  Britain  except 
London,  while  at  present  their  populations,  owing  to  the 
influx  of  refugees,  are  each  nearly  four  miUions.  The 
following  table  of  estimated  population  in  1913  may  be  of 
interest,  and  will  indicate  the  towns  best  worth  approaching 
from  a  business  standpoint.    The  figures  are  taken  from 


THE  COUNTEY 


41 


the  latest  olSicial  returns,  but  in  many  cases  are  much 
larger  to-day,  owing  to  the  influx  of  refugees  and  changed 
conditions  arising  out  of  the  war.  It  should  also  be  borne 
in  mind  that  as  these  towns  are  usually  hundreds  of  miles 
apart,  their  trade  is  by  no  means  confined  to  the  popula- 
tions of  the  towns  themselves,  but  that  they  draw  from  a 
very  wide  area,  often  with  a  large  population. 

^^ '^ij^  C^^^U^U^     ^Aj^kii      l^^^     ^U^4/^ 

POPULATION  OF  PRINCIPAL  TOWNS  IN  RUSSIA 


1,  .Petrograd 

2,018.000 

Penza 

79,000 

Petropavlovsk 

43,000 

^^rMoscow 

1,676,000 

Byelostok 

78,500 

Radom 

40,000 

-  ■  Warsaw 

771,000 

Krasnoyarsk 

77,000 

Usovka 

„ 

Kiev 

626,000 

Kremenchug 

„ 

Theodosia 

37,000 

\    Odessa 

625,000 

Poltava 

j> 

Petrokov 

„ 

-  -Lodz 

510,500 

Smolensk 

75,000 

Riazan 

36,000 

,^'fliga 

440,000 

Perm 

j» 

Askhabad 

»» 

^  Baku 

338,815 

Sevastopol 

>» 

Archangel  ^ 

35,500 

A  Tiflis 
•f  Saratov 

300,000 

Kursk 

70,000 

Kars 

35,000 

268,000 

Tambov 

69,000 

Semilpalatinsk 

»> 

>  Kharkov 

249,000 

Simferapol 

68,000 

PskofE 

34,000 

^  Ekaterinoslav 

228,000 

Kherson 

67,000 

Viatka 

,, 

Tashkend 

201,000 

Taganrog 

66,500 

Zlaboust 

„ 

Kazan 

189,000 

Kronstadt 

66,000 

Bakhmut 

33,500 

Vilna^ 

183,000 

LubUn 

65,000 

Barnaul 

33,000 

Buzuluk  %^ 

165,000 

Andizhan 

>> 

Liumen 

32,500 

Rostov 

160,000 

Khabarovsk 

63,000 

Erivan 

32,000 

Samara 

150,000 

Novorossisk 

61,000 

Chernigov 

»» 

Astrakhan 

147,000 

Chelyabinsk 

»> 

Vladimir 

»» 

Helsingfors"^ 

137,000 

Elets 

60,000 

Yakoutsk 

»» 

Tula- 

132,000 

Kovna 

58,000 

Nikolaevskaia 

31,000 

Kishineff- 

131,000 

Blagoveshchensk  *^ 

57,000 

Nikolaievsk 

„ 

Nikolaiev  • 

:  130,000 

Simbirsk 

56,500 

Rybinsk 

„ 

Om^ 

127,000 

Mohilev 

56,000 

Batoum 

30,000 

Kokand 

122,000 

Stravropol 

54,000 

Kielce 

»» 

Irkutsk.- 

120,000 

Kalouga 

„ 

Plotsk 

» 

Revel  - 

116,000 

Grodna 

53,000 

Tsarskoe-Selo 

5> 

Dvinsk  *" 

111,000 

Novocherkassk 

,, 

Vologda 

29,000 

Tomsk    •► 

>> 

Vladikavkaz 

,^ 

Vladivostok  - 

»i 

Yaroslavl    " 

Mariupol 

52,000 

Azof 

28,600 

Nijni-Novgorod 

UO^OOO 

Koutais 

50,000 

Bryansk 

,, 

Orenburg 

„ 

Kostroma      . 

47,500 

Lomzha 

27,000 

Ekaterinburg 

108,000 

Tomel 

47,000 

Novgorod 

»» 

Oufa- 

103,500 

Abo     n 

jj 

Vyennui 

»» 

Minsk 

103,000 

Brest-Litovsk  - 

Sergievo 

26,000 

Elisavetgrad  - 

100,500 

Kamenetz-Podolbk       „ 

Armavii- 

»• 

Chita- 

94,000 

Elisavetpol 

46,000 

Yalta 

26,000 

Ekaterinodai*' 

90,000 

KaUsh 

j^ 

Eupatoria 

» 

Orel  - 

„ 

Pyatigorsk 

>> 

Souvalki 

»» 

Libau 

i> 

Syzran 

45,500 

Kalach 

» 

Zhitomir 

f> 

Mitau 

45,000 

Kourgan 

»> 

Samarkand 

89,000 

Tammerfora 

>» 

Viborg 

>» 

Vitebsk 

81,000 

Uralsk 

» 

IV 
THE  LANGUAGE 

Some  knowledge  of  Russian  essential — French  and  German  of  very  little 
use — Scientific  and  business  words — The  alphabet  characters — Divergence 
due  to  transliteration — German  spelling  of  Russian  names— Family 
names — Dialects — Learning  Russian — What  to  learn — Englishman  has 
more  facility  than  the  German — Fault  of  phrase-books. 

AS  some  knowledge  of  the  Kussian  language  is  abso- 
-  lutely  essential  to  the  traveller  who  visits  Eussia  on 
business,  a  few  words  on  this  subject  may  not  be  out  of 
place  in  a  commercial  book.  In  the  first  place,  let  me  say 
that  French  and  German  are  of  very  little  use.  In  a  six 
months'  tour  there  were  perhaps  three  occasions  where 
French  came  in  useful,  and  three  or  four  where  a  know- 
ledge of  German  came  in  very  handy.  The  latter  were, 
however,  entirely  in  Petrograd.  Formerly  there  was  a 
great  deal  of  German  spoken  in  Petrograd  and  the  Baltic 
Provinces,  but  its  use  was  entirely  forbidden,  and  notices 
to  that  effect  abounded  in  all  the  hotels  and  public 
offices.  It  is  too  much  to  expect  that  German  speech 
will  be  tabooed  after  the  war,  but  even  then  the  traveller 
will  find  very  httle  use  for  it  outside  the  district  men- 
tioned. French  is  largely  a  ''  society  "  language,  and 
comparatively  little  used  in  business,  though  in  the 
larger  offices  there  will  usually  be  found  a  clerk  who 
understands  that  language.  One  can  get  along  fairly  well 
\\ith  English  in  the  larger  cities,  though  many  occasions 
will  arise  where  Russian  is  obUgatory,  and  in  any  case 
it  is  absolutely  necessary  in  asking  one's  way  in  the  street, 

42 


THE  LANGUAGE  43 

giving  instructions  to  the  cabman,  purchasing  railway 
tickets,  ordering  meals  in  a  restaurant,  and  the  thousand 
and  one  amenities  of  daily  life. 

The  Eussian  language  belongs  to  the  Slavonic  group 
of  languages,  to  the  group  which  embraces  also  Polish, 
Bohemian,  Bulgarian,  and  Servian.  Hence,  it  is  very 
easy  for  a  Eussian  to  learn  those  languages  in  a  short 
time.  For  example,  a  Servian  can  read  with  very  httle 
study  a  Eussian  newspaper.  Nearly  all  scientific  and 
many  business  words  that  have  been  coined  during  the 
past  century  are  practically  the  same  in  Eussian  as  in 
English.  Photograph,  engineer,  bank,  cement,  electrical, 
premium,  telegraph,  telephone,  catalogue,  cheque,  credit, 
are  a  few  words  taken  at  random,  that  are  to  all  intents 
and  purposes  the  same  in  both  English  and  Eussian,  and 
would  be  readily  recognised.  A  few  German  words,  such 
as  vokzahl  for  railway  station  and  droshky  for  cab, 
have  also  been  incorporated  into  the  language.  Eussian 
is,  however,  nearer  to  English  than  Hungarian,  Turkish, 
or  Chinese.  But  the  similarity  of  the  Eussian  tongue 
to  our  own  is.  nowadays  remote.  It  can  be  traced  in  such 
words  as  mat  (mother),  dva  (two),  tri  (three),  syn  (son), 
docher  (daughter),  voda  (water),  etc.  But  such  words 
are  comparatively  few,  and  others  are  so  much  altered 
that  they  are  of  very  little  use  to  the  English  student. 

The  sources  of  Eussian  civilisation  are  derived  from 
Grecian  and  Byzantine,  and  not  Uke  ours,  from  Eoman 
models.  This  difference  is  illustrated  by  the  i-espective 
alphabetic  characters.  While  we  use  Latin  characters, 
the  Eussians  have  the  so-called  Cyrillic  characters,  and 
those  who  know  the  Greek  alphabet  can  easily  read  the 
Eussian  letters. 

But  the  real  difficulty  with  the  Eussian  language  is 
not,  as  many  people  suppose,  its  characters.  These  can 
easily  be  mastered  in  a  few  weeks,  and  more  trouble  is 


44  COMMERCIAL  EUSSIA 

experienced  with  those  that  are  similar  to  English  letters, 
but  pronounced  differently,  than  with  those  that  appear 
at  first  to  be  hieroglyphics.  One  has  to  remember  that 
B  is  pronounced  V,  H  is  N,  P  is  R,  C  is  always  S,  Y  is  00, 
etc.  But  when  once  the  thirty-six  characters  have  been 
mastered,  it  is  comparatively  eaSy  to  pronounce  any 
word  in  Russian,  as  it  is  entirely  a  phonetic  language, 
every  word  being  pronounced  as  it  is  spelt,  and  therefore 
free  from  our  anomaUes,  as  "  ough,"  etc.  The  flexibihty 
of  the  Russian  language,  while  allowing  much  finer  grades 
of  expression,  makes  the  grammar  very  difficult.  For 
instance,  there  are  fourteen  different  forms  for  the  Russian 
equivalent  for  our  word  "  blue,"  and  more  than  a  score 
of  cases,  numbers  and  genders  in  which  they  are  used. 
Even  the  names  of  towns  and  persons  undergo  the  ter- 
minal change  according  to  the  case,  and  ''  Mr.  Cook  " 
becomes  "  Mr.  Cookoo,"  "  Mr.  Cookie,"  etc.,  according  to 
circumstances.  As  all  Enghsh  names  have  to  be  trans- 
scribed  phonetically  into  Russian  characters,  there  is  less 
danger  for  a  Russian  pronouncing  one's  name  wrongly 
than  for  an  EngHshman.  Not  all  Enghsh  sounds,  how- 
ever, can  be  found  in  Russian  ;  our  H,  for  instance,  does 
not  exist  in  modern  Russian.  Thus  the  English  name 
"  Whitehouse "  is  transcribed  into  Russian  "  Ghite- 
gouse  "  ;  the  town  "  HuU  "  wiU  be  "  Ghull,"  the  gh 
taking  the  place  of  our  Enghsh  h.  As  in  most  continental 
languages,  our  sound  th  does  not  exist  in  Russian,  and 
the  name  "  Thornton  "  would  be  transcribed  "  Sornton." 

At  various  periods  of  Russian  history,  the  Russian 
language  has  borrowed  many  foreign  words,  and  has  been 
under  various  influences.  During  the  seventeenth  cen- 
tuiy,  for  instance,  many  terms  needed  to  express  European 
things  and  ideas  had  been  supphed  by  the  Pohsh  language. 
This  influence  could  be  traced  not  only  in  the  vocabulary, 
but  also  in  the  way  of  spelling  some  Russian  words  if  in 


THE  LANGUAGE  46 

Latin  characters  in  the  Polish  fashion.  Transhteration 
has  produced  a  marvellous  result  in  the  speUing  of  words, 
as  the  Germans,  Dutch,  French  and  English  have  their 
influence  also.  This  is  why  there  exists  such  a  divergence 
in  the  spelling  of  names  of  persons  and  places  when  in 
Latin  characters.  It  often  happens,  for  instance,  that 
in  two  telegrams  from  Eussia  published  in  the  Enghsh 
papers,  the  same  place  is  mentioned,  but  the  difference 
in  spelUng  is  so  remarkable  that  the  British  pubhc  takes 
it  for  two  quite  different  places.  The  Eussian  who  has 
learnt  the  Latin  alphabet  in  Poland  will  spell  the  name 
of  a  village  "  Zukowo."  Should  he,  however,  know 
French,  he  will  spell  the  same  name  "  Joucovo."  As 
another  example,  an  important  town  which  phonetically 
sounds  in  Enghsh  "  Chernigov  "  will  be  spelt  by  one  as 
"  Czernihow,"  while  by  another  "  Tchernigoff,"  the  latter 
evidently  new  German. 

This  brings  me  to  a  point  on  which  I  feel  very  strongly. 
Eussian  characters  have  similarly  to  be  transposed 
phonetically  into  Enghsh.  In  most  of  the  maps  pub- 
hshed,  and  in  many  books,  as  well  as  in  much  business 
correspondence,  the  names  of  Eussians  and  Eussian  towns 
are  spelt  as  the  Germans  would  spell  them  to  give  the 
Eussian  sound.  Viborg  is  what  the  Eussians  call  the  town 
in  Finland,  and  to  get  that  sound  the  Germans  would 
spell  it  Wiborg.  The  guttural  kh  of  the  Eussians  has  a 
corresponding  sound  in  the  German  ch,  and  hence  "  Char- 
koff,"  "Cherson,"  etc.,  which  should  be  "Kharkov," 
"  Kherson,"  etc.  I  had  a  letter  from  an  Enghsh  firm  to 
one  of  their  customers,  a  ''  Mr.  Juanow,"  and  after  a 
great  deal  of  trouble,  eventually  discovered  the  name  to 
be  "  Ivanov,"  the  Enghsh  firm  having  done  their  business 
through  a  German  agent.  I  hope  those  responsible  for 
the  education  of  our  young  men  in  Eussia  will  look  after 
this  feature  of  transhteration. 


46  COMMERCIAL  RUSSIA 


ler,  1 


Every  Russian's  middle  name  is  that  of  his  father 
with  the  suffix  "  vitch."  John  Jones,  if  his  father's  name 
was  Alexander,  becomes  Ivan  Alexandrovitch  Ivanov  ; 
if  his  father's  name  was  William,  it  is  Ivan  Vasihvitch 
Ivanov.  The  termination  "  vitch  "  never  appears  in  a 
proper  name,  and  among  friends  and  even  business 
acquaintances,  the  middle  name  is  usually  employed. 

The  Russian  language  has  several  dialects.  The  literary 
Russian  is  the  Moscow  dialect,  and  although  about  thirty 
miUions  in  the  south  of  Russia  speak  the  Little  Russian 
or  Luthanian  dialect,  and  about  ten  millions  in  western 
Russia  speak  the  White  Russian  dialect,  the  literary 
language,  the  language  of  the  enlightened  classes,  is 
everywhere  uniform,  and  these  dialects  could  only  interest 
a  scientist  in  his  linguistical  researches.  They  are  nothing 
like  so  distinguished  as  in  this  country,  and  the  foreigner 
hardly  notices  them  as  they  are  largely  confined  to  the 
poorer  classes. 

To  learn  the  Russian  language  grammatically  would  take 
several  years  ;  to  learn  it  sufficiently  for  ordinary  practi- 
cal purposes  is  a  matter  of  months.  With  about  three 
months'  preparation  before  I  went  to  Russia,  and  with  a 
few  weeks'  practice  in  the  country,  I  found  myself  getting 
along  very  comfortably,  although  for  ten  days  at  a  stretch 
I  neither  heard  nor  spoke  a  word  of  anything  but  Russian, 
and  ^asited  several  outlying  towns,  such  as  Viatka, 
Vologda,  etc.,  where  there  was  nobody,  so  far  as  I  knew, 
who  spoke  Enghsh.  I  bought  my  railway  tickets,  hired 
cabs,  engaged  rooms  at  the  hotel,  ordered  my  meals,  in- 
quired my  way  about,  the  times  of  the  trains,  etc.,  without 
any  difficulty.  This  was,  however,  due  as  much  to  the 
patience  and  kindness  of  the  Russians  as  to  my  know- 
ledge of  the  language.  Never  once  did  I  get  the  Russian 
"  don't  understand  "  to  my  first  inquiry.  If  they  did  not 
catch  my  question,  and  often  they  did  not,  there  was 


\ 


THE  LANGUAGE  47 

always  the  ''  how  ?  "  "  wh^re  ?  "  "  what  ?  "  and  an  atten- 
tive Hstening  to  my  repetition  of  the  question,  that  was 
usually  sufficient  to  overcome  my  bad  pronunciation  and 
faulty  grammar.  I  have  never  met  a  people  who  took  so 
much  pains  to  understand  a  foreigner  as"  the  Kussians, 
none  who  showed  so  much  sympathy  with  and  apprecia- 
tion of  a  foreigner's  attempt  to  speak  their  language.  In 
fact,  everyone  seemed  to  take  a  delight  in  teaching,  and 
every  steamboat  and  train  produced  willing  teachers  of 
all  ages  and  conditions,  generals,  merchants,  school- 
masters, and  even  little  children,  all  delighted  to  point  out 
and  name  things  and  to  construct  the  sentences  to  carry 
on  conversation. 

My  advice,  then,  to  anyone  contemplating  visiting 
Eussia  is  to  at  least  master  the  characters  of  the  Eussian 
alphabet,  learn  a  few  hundred  words  of  ordinary  use 
and  the  numbers  from  one  to  a  thousand.  It  will  add 
enormously  to  the  pleasure  of  the  trip,  prove  a  most 
economical  factor,  and  materially  aid  in  his  business 
pursuits. 

It  is  hardly  possible  for  the  pronunciation  of  the  Eussian 
language  to  be  learnt  without  the  help  of  a  teacher,  if 
the  student  learns  or  studies  it  for  a  practical  use.  Apart 
from  Eussian  grammar  being  very  difficult,  there  are 
hardly  any  rules  concerning  accent,  which  varies  in 
different  words  and  makes  a  wonderful  difference  in  the 
sound.  Moreover,  phonetical  spelling  often  can  give  only 
a  very  rough  idea  of  some  sounds,  especially  those  which  do 
not  exist  in  Enghsh.  Notwithstanding  this,  when  once 
an  EngHshman  has  heard  a  Eussian  word  pronounced 
distinctly,  he  can  usually  repeat  it  correctly.  He  has 
much  more  facihty  in  this  than  a  German.  The  German, 
for  instance,  is  never  able  to  pronounce  "11,"  as  it  sounds 
in  the  Enghsh  "  well,"  ''  beautiful,"  etc.  The  Eussian 
sound  "  kh  "  can  be  found  in  the  Scotch  word  "  loch." 


48  COMMERCIAL  RUSSIA 

A  Russian  word  "  byU  "  (he  was),  would  be  pronounced 
by  a  German  after  many  years'  residence  as  "  beel."  But 
no  Englishman  would  find  this  word  difficult  to  pronounce. 
The  sound  "y"  such  as  we  have  in  the  word  "rhythm" 
is  followed  by  double  1,  as  in  our  word  "  bill."  The 
Russian  soimd  *'  shtch  "  or  "  shch  "  might  frighten  at  a 
first  glance,  and  yet  we  have  the  very  sound  in  our  own 
language.  If  we  can  say  "  bluish  china  "  there  is  no  diffi- 
culty in  pronouncing  the  Russian  word  "  ishchi  "  (search 
thou). 

The  usual  fault  of  all  books  containing  dialogues  is 
that  the  sentences  selected  are  long  and  dilB&cult,  and  the 
language  used  is  bombastic.  A  story  is  told  of  a  Russian 
wishing  to  order  beef-steak  in  a  London  restaurant,  who 
opened  his  manual  and  conmaenced  to  read  with  the 
greatest  difficulty,  "  May  I  ask  you  if  you  would  be  kind 
enough  to  give  me  some  hot  beefsteak,  if  you  please." 
Half-way  through  the  sentence,  however,  he  was  engulfed 
in  such  difficulties  that  he  began  to  read  again  from  the 
commencement, ^with  about  the  same  success.  An  Eng- 
Hshman  was  sitting  next  to  him,  saw  the  book,  smiled  and 
said  to  the  waiter,  "  Beefsteak,  please."  So  in  Russia, 
"  Where  is  the  station,  please  ?  "  which  takes  three  words 
in  Russian,  would  be  much  more  readily  understood  than 
the  usual  phrase-book  inquiry. 

But  learn  it  from  a  competent  teacher,  and  preferably 
a  Russian.  There  are  teachers  who  teach  with  a  decidedly 
German  accent,  and  there  are  those  whose  Russian  is  as 
much  understood  as  a  broad  Lancashire  accent  would  be 
understood  in  Devonshire. 


THE  PEOPLE 

Characteristics— Races— The  White  Russians— The  Great  Russians— Their 
towns — Villages — Dress— Little  Russians  or  Ukrainians— The  Poles — The 
Letts  and  Lithuanians— The  Germans— The  Jews— The  Mongolians— 
The  Ural  group— The  Finns— The  Turkish  group— The  Bashkirs— The 
Khirghizes — The  Cossacks. 

THE  varieties  of  people  and  languages  in  Russia  are 
almost  as  great  as  its  physical  diversities,  and  range 
from  purely  European  types  to  distinctly  Mongolian 
characteristics.  Wide  distinctions  are  shown  in  type, 
custom  and  dress,  but  much  less  in  character  than  would 
be  supposed.  The  average  Russian  is  an  overgrown  child 
with  a  curious  mixture  of  ideahsm  and  primitive  impulse. 
He  is  easily  influenced  whether  by  appeals  to  his  primeval 
passions  or  to  the  "  broad  sympathy  "  upon  which  he 
prides  himself.  At  a  pubHc  meeting  I  have  known  the 
speaker  receive  uproarious  applause  when  he  stated  that 
a  certain  course  of  action  had  been  decided  upon  ;  to  be 
followed  by  an  equally  noisy  demonstration  of  approval 
when  he  went  on  to  say  that  after  further  consideration 
an  altogether  difierent  plan  was  to  be  pursued.  They  are 
inquisitive  to  the  point  of  what  we  should  consider  rude- 
ness, but  are  equally  communicative  of  their  own  domestic 
and  business  afiairs,  and  look  upon  mutual  confidences 
as  a  sign  of  friendship.  They  are  prodigal  and  almost 
ostentatious  in  their  hospitahty.  Fond  of  music  and 
dancing,  they,  however,  like  books  and  plays  of  the  most 
gruesome  character,  and  while  they  have  a  sense  of  humour 

E  49 


50  COMMERCIAL  RUSSIA 

peculiarly  their  own,  it  is  not  very  self-evident  to  an 
Englishman.  They  indulge  very  little  in  sports,  though 
horse  racing  and  trotting  of  a  kind  take  place  all  the  year 
round  at  most  of  the  principal  towns,  and  in  summer-time 
last  from  noon  until  about  eight  o'clock,  and  include 
eighteen  or  twenty  "  events."  Card  playing  is  practically 
unknown  except  among  the  richer  classes  in  the  big  cities. 
Russians  are  victims  of  a  weird  fatalism  which  finds  its 
expression  in  the  most-used  Russian  word  "  nitchevo  " — 
"  nothing  " — "  it  doesn't  matter."  It  helps  to  take  things 
philosophically  if  one  misses  a  train,  or  finds  it  seven  hours 
late  ;  if  a  purse  is  lost,  or  a  leg  is  broken. 

Closely  corresponding  in  frequency  of  use  is  "  see-chass," 
supposed  to  mean  "  in  a  minute,"  "  at  once,"  but  which 
Uterally  interpreted  is  ''  within  the  hour  "  ;  and  this  is 
its  usual  actual  meaning.  The  Russian  never,  under  any 
circumstances,  hurries,  and  very  seldom  worries. 

Still,  when  all  this  has  been  said,  he  is  the  most  lovable 
of  fellows,  sympathetic,  kind-hearted,  ingenuous  and 
almost  childhke  in  his  simphcity,  and  if  you  make  a  friend 
of  him  and  he  feels  that  you  are  in  sympathy  with  him  and 
what  interests  him,  he  will  do  almost  anything  for  you. 

Most  of  the  Russians  are  Slavs  of  Aryan  descent. 
Their  original  home  was  on  the  Upper  Dnieper  and  the 
Upper  Dvina,  whence  they  gradually  spread  over  the 
whole  country,  branching  into  several  different  peoples. 
The  most  important  Slav  people  is  the  Russians,  who 
number  about  100,000,000,  and  so  account  for  75  per 
cent,  of  the  population  of  European  Russia.  All  of 
these  are  members  of  the  Greek  Catholic  Church  or  its 
sects.  They  are  divided  into  three  stocks  :  the  Great 
Russians  (the  standard-bearers  proper  of  the  Russian 
feehng  of  nationality),  the  White  Russians,  and  the  Little 
Russians.  The  first  two  of  these  ara  closely  connected 
as  regards  language. 


THE  PEOPLE  61 

The  White  Eussians  occupy  what  were  probably  the 
original  homes  of  the  Slavs  in  White  Eussia  (provinces 
of  Minsk,  Mohilev,  Vilna,  Vitebsk  and  Grodno).  They 
number  about  eight  millions,  and  probably  derive  their 
name  from  the  light  colour  of  their  clothing.  They  are  the 
poorest  and  least  advanced  of  the  three  stocks.  Their 
villages  are  small,  and  solitary  farms  are  frequent.  A 
disease  of  the  hair  known  as  Plica  Polonica  is  very  common 
among  themr-- 

The  Great  Eussians,  of  whom  there  are  62,000,000  in 
European  Eussia,  migrated  in  early  times  from  their 
original  homes  towards  the  East,  driving  the  Finnish 
peoples  before  them.  They  have,  however,  to  some  extent 
mingled  with  the  Finnish  race,  which  probably  accounts 
for  the  broad  faces,  flat  noses,  and  other  Mongolian 
features  found  frequently  among  them.  They  now  occupy 
not  only  "  Great  Eussia  "  (i.e.  North  and  Central  Eussia, 
with  the  north-east  part  of  the  Black  Earth  region),  but 
also  East  and  South-East  Eussia,  the  former  territory  of 
the  Tartar  Khans.  Their  speech,  customs,  and  character 
are  spread  over  the  whole  empire.  Physically  they  are 
blond,  blue-eyed,  and  vigorous,  with  broad  shoulders  and 
bull  necks,  often  somewhat  clumsy  and  with  a  strong 
tendency  to  obesity.  Their  character  has  been  influenced 
not  only  by  a  long  history  of  subjugation  to  feudal 
despotism,  but  also  by  the  gloomy  forests,  the  unre- 
sponsive soil,  and  the  rigorous  climate,  and  especially  by 
the  enforced  inactivity  of  the  long  winters.  In  disposi- 
tion they  are  melancholy  and  reserved,  clinging  obstin- 
ately to  their  traditions.  They  are  easily  disciplined,  and 
so  make  excellent  soldiers,  but  have  little  power  of  inde- 
pendent thinking  or  of  initiation.  The  normal  Great 
Eussia  is  thus  the  mainstay  of  political  and  economic 
inertia  and  reaction.  Even  the  educated  Eussian  gives 
comparatively  little  response  to  the  actual  demands  of 


62  COMMERCIAL  RUSSIA 


1 


life  ;  he  is  more  or  less  victim  of  fancy  and  temperament, 
which  sometimes  lead  him  to  a  despondent  slackness, 
sometimes  to  emotional  outbursts.  Here  we  have  the 
explanation  of  the  want  of  organisation,  the  disorder, 
and  the  waste  of  time  which  strike  the  western  visitor 
to  Russia.  This  pessimistic  outlook  finds  expression  in 
the  word  that  is  for  ever  on  Eussian  lips — "  nitchevo  " — 
"  it  doesn't  matter  "  ;  the  Russian  derives  his  faults  as 
well  as  his  virtues  from  his  "  wide  nature."  The  im- 
portant and  fascinating  literature  of  Russia  reflects  this 
dreamy  and  melancholy  outlook  on  life,  which  is  seen 
also  in  the  national  songs  and  music. 

The  towns  of  Great  Russia  generally  cover  a  great  deal 
of  ground,  and  are  all  laid  out  on  the  same  pattern.  The 
centre  is  occupied  by  a  spacious  square,  from  which 
radiate  broad  and  badly  paved  streets  crossing  each 
other  at  right  angles.  In  the^central  part  of  the  town  the 
houses  are  built  of  stone  and  painted  white,  yellow,  or 
pink.  The  public  buildings  seldom  possess  any  architec- 
tural interest.  In  the  suburbs  the  houses  are  of  wood, 
and  stand  at  considerable  distances  from  one  another. 
The  only  effective  architectural  features  are  the  largfe 
churches,  which  generally  stand  in  open  spaces  at  the 
intersection  of  the  streets.  Their  gilded,  silvered,  or 
brightly  coloured  cupolas  are  very  conspicuous.  The 
commerce  of  the  place,  especially  its  retail  trade,  is  often 
concentrated  in  Oriental  fashion  in  bazaars  or  "  factories." 
Each  shopkeeper  has  his  abacus  and  samovar  or  tea- 
machine.  A  large  proportion  of  the  population  wear 
uniforms,  including  not  only  soldiers,  but  civil  servants, 
students,  schoolboys,  and  so  on. 

The  villages  generally  consist  of  one  long  straggHng 
and  unpaved  street.  In  North  Russia  the  miserable 
houses  are  composed  of  logs  placed  horizontally  one  above 
the  other,  the  interstices  being  filled  in  with  tow  and  moss. 


THE  PEOPLE  53 

The  interior  consists  of  a  single  room.  The  brick  stove 
is  used  for  heating,  cooking  and  baking,  and  also  as  a 
couch  and  bed.  Every  house  in  town  and  country  has  its 
ikon,  with  a  perpetually  burning  lamp,  before  which 
every  Eussian  crosses  himself  on  entering  the  room.  The 
court  is  surrounded  by  an  open  shed,  adjoined  by  the 
stables,  barns  and  threshing-floor.  Every  village  possesses 
a  simple  kind  of  vapour  bath,  which  is  much  frequented, 
especially  on  Saturdays. 

The  regular  dress  of  the  Great  Russian  peasant  con- 
sists of  a  coloured  shirt,  generally  of  red  cotton,  which  is 
worn  outside  the  trousers  and  not  tucked  in.  Broad 
leather  boots  reaching  to  the  knees,  or  puttees,  fastened 
to  sandal-like  bast  shoes,  cover  the  ends  of  the  coloured 
and  baggy  trousers.  In  winter  felt  boots  are  common. 
The  long-skirted  coat,  with  a  low  collar,  is  held  together 
by  a  belt  or  coloured  sash.  In  summer  the  upper  garment 
is  the  armyak,  made  of  coarse  cloth  with  a  broad  collar, 
in  winter  the  sheepskin  tulip  or  the  fur  shuba.  The  head 
is  covered  by  the  low  shapka,  made  of  felt  or  fur,  or  by 
the  peaked  kartuz.  The  ordinary  Russian  lets  his  beard 
grow,  and  allows  only  the  hair  of  his  head  to  be  cut.  The 
chief  garment  of  the  women  is  the  sarafan,  a  skirt  and 
bodice  with  shoulder-straps,  all  in  one  piece,  or  the  pan- 
yova,  a  linen  skirt.  Above  these  is  a  short  kaftan.  Round 
the  head  they  wear  a  gaudy  handkerchief,  which  is  often 
replaced  on  holidays  by  a  sort  of  tiara  adorned  with 
imitation  pearls. 

The  Little  Russians  (30,000,000),  or  Ukrainians,  are 
settled  in  the  Black  Earth  district  (i.e.  in  Little  Russia 
proper)  and  in  the  Ukraine,  which  includes  the  provinces 
of  Kiev,  Poltava,  Kharkov,  and  Tchernigov.  They  are 
also  found  in  Volhynia  and  Podoha,  whence,  under  the 
name  of  Ruthenians,  they  spread  into  Galicia  and  North- 
East  Hungary.    In  recent  times  they  have  also  colonised 


54  COMMERCIAL  RUSSIA 


1 


Bessarabia,  Kherson  and  Taurida,  in  which  provinces 
they  now  form  a  majority  of  the  inhabitants.  They  are 
slender  and  dark,  and  they  have  the  emotional  southern 
temperament ;  their  poetry  and  music  are  of  a  high  order, 
as  is  evidenced  by  their  popular  songs  and  proverbs. 
Their  dialect  is  very  different  from  those  of  the  Great  and 
White  Russians.  The  settlements  of  the  steppes  are 
still  more  stragghng  than  those  of  the  forest  region  ; 
owing  to  the  lack  of  timber,  the  houses  are  generally  built 
of  mud  or  play.  The  Ukrainians  in  the  present  crisis 
claim  territory  to  the  north  as  far  as  the  Governments 
of  Kursk  and  Voronezh,  and  to  the  east  as  far  as  the 
Donetz  Basin,  whereas  the  Russians  seek  to  confine 
Ukrainian  autonomy  within  unduly  narrow  Umits.  The 
final  settlement  of  the  boundaries  between  the  two  will 
depend  not  so  much  on  the  nationahty  of  the  inhabitants 
as  on  the  development  of  events  in  Northern  and  Central 
Russia. 

A  unique  position  is  held  by  the  Poles,  a  Slav  race 
occupying  the  Russian  part  of  the  old  kingdom  of  Poland. 
They  are  also  to  be  found  sporadically  throughout  Western 
Russia,  which  was  formerly  under  their  sway.  Their  total 
number  is  about  10,000,000.  Their  history  and  their 
mode  of  life  as  well  as  their  rehgion  (they  are  Roman 
Catholics)  all  bring  them  into  much  closer  connection 
with  Western  Europe  than  with  Russia.  The  Polish 
language  is  a  member  of  the  Western  Slav  family,  em- 
plo3dng  Roman  characters.  The  Poles  are  of  the  middle 
height,  with  slender  but  muscular  bodies  and  Ught  hair. 
The  contrast  between  the  lower  classes  and  the  noblesse 
is  very  striking,  the  latter  being  physically  and  in  charac- 
ter refined  to  an  almost  excessive  pitch  of  elegance. 
Pohsh  women  are  renowned  for  their  grace  and  beauty. 

To  the  Slavs  also  belong,  broadly  speaking,  the  Letts 
(nearly   2,000,000),    who    occupy    Couiland    and    South 


THE  PEOPLE  55 

Livonia,  and  the  Lithuanians  (15,000,000),  who  form  the 
bulk  of  the  population  in  Russian  Lithuania.  The  former 
are  Lutherans,  the  latter  Eoman  Catholics. 
xThe  non- Slavonic  Aryans  in  European  Russia  num- 
ber 4,000,000.  The  most  numerous  are  the  Germans 
(2,000,000),  who  are  the  country  gentlemen  and  citizens 
of  the  Baltic  Provinces  in  virtue  of  their  descent  from  the 
former  masters  of  the  country.  There  are  also  agricul- 
tural settlements  of  Germans  on  the  Upper  and  Lower 
Volga,  in  South- West  Russia,  and  in  the  Caucasus  and 
the  Crimea,  many  of  them  established  in  the  reign  of 
Catherine  IL  German  manufacturers,  merchants  and 
artisans  are  found  in  all  the  large  towns.  German  in- 
fluence on  Russia  has  always  been  considerable.  In  Fin- 
land the  Swedes  were  the  pioneers  of  civilisation.  They 
now  number  about  370,000,  and  are  especially  numerous 
in  the  coast  towns.  Roumanians  form  the  bulk  of  the 
population  in  Bessarabia.  Bulgarians  and  Greeks  are 
also  more  or  less  numerous  in  South  Russia. 

The  Jews  (nearly  7,000,000)  migrated  in  the  Middle 
Ages  from  Germany  to  Poland,  and  speak  a  German 
dialect  intermingled  with  Hebrew  expressions.  Many  of 
them  now,  however,  speak  the  language  of  the  country. 
They  are  not  allowed  to  live  either  in  Great  Russia  or 
in  East  Russia.  Strictly  limited  in  their  privileges,  and 
subject  to  numerous  economic  restrictions,  as  well  as  to 
the  caprice  of  the  Russian  officials,  most  of  the  Polish  Jews 
subsist  in  a  state  of  physical  and  moral  degradation. 
As  a  result,  they  migrate  in  large  numbers  to  other 
countries. 

The  Mongolian  race  is  represented  in  Russia  by 
10,000,000  souls,  belonging  partly  to  the  Ural  and  partly 
to  the  Turkish  group.  The  former  are  found  in  the  north, 
north-east  and  north-west,  the  latter  in  the  south  and 
south-east.    In  the  province  of  Astrakhan  there  are  also 


66  COMMEECIAL  RUSSIA 

170,000  nomadic  Kalmucks,  who  are  of  pure  Mongol 
blood  and  profess  the  rehgion  of  Lamaism. 

In  the  Ural  group  (5,400,000)  the  Samoyedes,  or  rein- 
deer-possessing nomads  of  the  Tundra  are  an  insignificant 
item.  The  great  bulk  of  the  group  consists  of  the  Finnish 
peoples,  who  were  the  aboriginal  inhabitants  of  the  whole 
of  North  and  North-East  Russia,  but  were  spht  into 
two  groups,  East  and  West,  by  the  Russian  advance. 

The  East  Finns  include  the  Ugrians  and  the  Permiaks, 
who  along  with  the  Syryenians  and  the  Votyaks  (650,000 
in  aU)  occupy  the  river  districts  of  the  Petchora,  Dvina 
and  Kama,  and  also  the  Volga  Finns  (1,860,000)  on  the 
Middle  Volga,  a  remnant  of  a  people  that  flourished  in 
the  Middle  Ages  (Tcheremisses,  Mordvins,  Tchuvashes). 
They  are  all  agriculturists,  and  occupy  colonies  inter- 
spersed among  the  Russians.  They  have,  however,  mingled 
freely  with  their  Russian  neighbours,  and  thus  present  no 
distinct  MongoUan  type.  They  belong  to  the  Greek 
CathoUc  Church. 

The  West  Finns  comprise  two  main  stocks.  The  Finns 
proper  including  the  Karleians  (3,000,000),  hve  in  Fin- 
land and  the  adjoining  parts  of  Russia.  They  are  also 
strongly  mixed  with  Aryan  blood,  and  are  consequently 
fair-haired,  blue-eyed,  strong  and  of  medium  stature. 
Civihsed  by  the  Swedes  and  converted  to  Protestantism, 
they  have  considerable  achievements  to  show  in  science, 
art  and  hterature.  Their  patriotism  is  very  keen  and  they 
cHng  obstinately  to  their  own  language.  The  Esthonians 
(about  1,000,000)  are  also  Protestants,  and  inhabit 
Esthonia  and  the  north  of  Livonia.  With  these  may  be 
mentioned  about  3000  Lapps,  who  live  in  the  extreme 
north  of  Finland  and  in  Kola  as  reindeer-owning  nomads 
and  fishermen.  They  are  small  in  stature  and  of  a  strong 
MongoUan  type.  A  few  Tchudes  and  Livonians  also 
belong  to  this  group. 


THE  PEOPLE  57 

The  Turkish  group,  all  of  whom  are  Mohammedans,  is 
predominantly  represented  by  the  Tatars  or  Tartars, 
descendants  of  those  tribes  of  the  Turkish  family  who 
migrated  from  Central  Asia  along  with  the  Mongolians 
and  once  dominated  the  whole  of  East  and  South  Eussia. 
They  have  now,  however,  almost  lost  their  Mongohan 
features.  Geographically,  they  are  divided  into  agricul- 
tural Grim  Tartars,  whose  number  (200,000)  is  constantly 
decreasing  through  emigration  to  Turkey,  and  Kazan 
Tartars  (2,000,000),  who  are  known  in  the  province  of  the 
Volga  not  only  as  agriculturists,  but  also  as  shrewd  mer- 
chants and  pedlars.  They  are  also  met  with  throughout 
Eussia  as  waiters  and  porters.  The  Kazan  Tartars  are  of 
the  middle  height  and  Hght  yellow  in  colour,  with  an  oval 
face,  narrow  and  oblique  black  eyes,  and  scanty  beards. 

Their  costume  consists  of  a  long  sleeveless  coat  sur- 
mounted by  a  kind  of  kaftan.  The  head  is  shaved  and 
covered  with  a  skull  cap,  over  which  the  ordinary  man 
wears  a  white  felt  hat  or  a  grey  or  black  fur  cap.  The  well- 
to-do  classes  wear  a  finer  fur  cap,  broader  at  the  top  than 
at  the  bottom.  Their  feet  are  shod  with  bright-coloured 
morocco-leather  boots  without  soles,  and  sKppers  or 
leather  overshoes.  Their  mosques  are  large  and  simple 
prayer-halls,  dominated  by  a  minaret. 

The  Bashkirs  (1,400,000),  in  the  provinces  of  Ufa  and 
Orenburg,  are  a  Finno-Turkish  mixed  race,  speaking  the 
Turkish  language  and  having  Mongolian  features.  The 
Mountain  Bashkirs,  a  tall  and  strong  race,  with  dark  hair, 
had  their  own  military  organisation  ("  Bashkir  Army  ") 
down  to  1874,  and  are  now  in  a  transition  state  between 
the  nomadic  and  the  settled  life.  The  Steppe  Bashkirs,  the 
result  of  intermixture  with  the  Meshtcheryaks,  are  still 
all  nomads,  but  Uve  in  houses  during  the  winter.  They 
subsist  mainly  on  kumiss. 

The  Khirghizes  are  a  Turkish  nomadic  race,  extending 


58  COMMERCIAL  RUSSIA 


1 


from  Central  Asia  to  the  Lower  Volga.  In  the  province  of 
Astrakhan,  where  they  live  side  by  side  with  the  Kalmucks, 
they  number  250,000. 

The  Cossacks  comprise  between  three  and  four  milUons 
of  the  Kussian  population,  endowed  with  certain  special 
privileges,  and  bound  in  return  to  give  mihtary  service 
under  special  conditions.  They  constitute  ten  separate 
Voiskos,  settled  along  the  frontiers  :  Don,  Kuban,  Terek, 
Astrakhan,  Ural,  Orenburg,  Siberian,  Semiryedhensk, 
Amur  and  Usuri.  The  Don  Cossacks  have  over  a  million 
and  the  Kuban  Cossacks  over  three-quarters  of  a  million, 
the  rest  being  relatively  small.  The  Don  villages  hold 
their  land  as  a  Commune,  and  may  allow  other  persons  to 
settle  by  paying  rent.  The  village  assembly  elects  its 
hetman  or  elder,  assesses  the  taxes,  divides  the  land  and 
settles  ordinary  disputes.  Military  service  is  obligatory  for 
aD  men  for  twenty  years  beginning  at  eighteen.  The  first 
three  are  spent  in  training,  the  next  twelve  on  active 
service,  and  the  balance  in  the  reserve.  Every  Cossack 
is  bound  to  provide  his  own  uniform,  equipment  and  horse 
(if  mounted)  ;  the  Government  only  supplying  the  arms. 
In  return  for  this  service  the  Cossacks  have  received  from 
the  State  considerable  grants  of  land  for  each  Voisko 
separately. 

The  central  administration  of  the  Ministry  of  War  was 
composed  of  representatives  of  each  Voisko,  who  discussed 
all  new  laws  affecting  the  Cossacks.  As  a  rule,  popular 
education  stands  at  a  higher  level  than  in  the  remainder  ot 
Russia.  They  have  more  schools  and  a  greater  proportion 
of  their  children  go  to  school.  In  addition  to  agriculture, 
which  is  usually  sufficient  to  supply  their  needs,  they  carry 
on  extensive  horse  and  cattle  breeding,  fishing  and  hunt- 
ing. The  extraction  of  minerals  and  the  factories  on  their 
lands  are  usually  in  the  hands  of  strangers  who  pay  rent. 


VI 
THE  BIG   CITIES 

Petrograd— Government  orders— The  shops— Hotels— The  British  Club— 
Kusso-British  Chamber  of  Commerce— The  Embassy— Moscow?,  the  pride 
of  Russians— The  Kremlin— Muir  and  Merrilees'  department  store— The 
shops  and  arcades— A  manufacturing  district— The  English  Club— The 

^  British  Consulate  —  0(Ze«sa,  a  cosmopolitan  city  —  Nikolaiev  —  Kherson 
— Warsaw — Rostov-on-Don — Baku — Omsk — The  Vice-Consuls — Kiev — 
Lodz — Riga . 

THE  big  cities  of  Russia  are  by  no  means  confined  to 
Petrograd,  Moscow,  Warsaw,  and  Odessa.  The  list 
of  towns  and  populations  on  another  page  give  some 
idea  of  the  importance  of  urban  centres,  but  in  many 
cases  these  figures  have  been  largely  increased  during 
the  war,  in  some  cases  temporarily,  through  the  influx  of 
refugees,  many  of  whom  have  settled  down  and  will  remain, 
and  in  others. by  a  natural  permanent  increase.  Both 
Petrograd  and  Moscow  have  now  well  over  two  million 
inhabitants,  and  are  each  twice  as  large  as  any  English 
town,  with  the  exception  of  London  itself.  Odessa,  with 
its  half-million  population,  is  about  the  same  size  as 
Leeds  or  Sheffield,  Baku  is  as  large  as  Newcastle-on-Tyne, 
Astrakhan  as  Sunderland,  Ekaterinoslav  as  Cardiff,  Kazan 
as  Oldham,  Kharkov  as  Plymouth,  Kiev  as  Bristol, 
Kishineff  as  Halifax,  Rostov-on-Don  as  Nottingham, 
Saratoff  as  Hull,  Tiflis  as  Bradford,  Tula  as  Preston,  and 
Yaroslavl  as  Middlesbrough. 

Petrograd  is  as  flat  as  a  pancake.  There  are  no  hills 
in  the  immediate  vicinity.  There  are  no  towns  of  any 
size  within  some  hundreds  of  miles.    It  is  therefore  self- 

59 


60  COMMERCIAL  RUSSIA 


^ 


contained,  and  so  far  as  its  shops  are  concerned,  depends  !| 
almost  entirely  upon  the  local  population.  It  is,  how- 
ever, the  seat  of  numerous  and  diversified  industries  ; 
it  is  one  of  the  principal  ports  of  entrance  to  the  Russian 
Empire,  and  it  is  the  centre  of  Government.  Moscow 
shares  with  it  the  honour  of  being  the  capital,  but  all  the 
Government  administrative  buildings  were  at  Petrograd, 
Moscow's  share  being  formerly  confined  to  the  coronation 
of  the  Tsar  in  that  city.  From  a  business  standpoint, 
Petrograd  is  most  important  from  the  fact  that  all 
Government  orders  are  given  out  here,  and,  of  course,  the 
wants  of  two  miUion  people  are  very  considerable.  It 
is  not  much  of  a  distributing  centre,  and  wholesale  dealers 
and  representatives  of  foreign  manufacturers  are  not 
as  numerous  as  at  Moscow.  There  are  very  few  imposing 
shops  in  Petrograd,  and  even  the  Nevski  Prospect,  a  mag- 
nificent and  very  wide  street  nearly  four  miles  long,  has 
scarcely  a  building  to  admire,  except  the  cathedrals,  the 
grocery  of  Elisieff  Bros.,  and  the  Singer  Sewing  Machine 
Co.'s  estabhshment.  By  the  way,  all  the  leading  thorough- 
fares in  cities  are  called  "  Prospect."  The  nearest  ap- 
proach to  a  department  store  is  one  run  on  somewhat 
similar  lines  to  the  Army  and  Navy  stores,  but  on  a  much 
smaller  scale.  There  is  a  shop  with  some  little  pretensions 
in  that  direction  caUed  the  "  Enghsh  Magazine,"  but  it 
is  quite  a  small  afiair,  and  the  ground  floor  of  the  building 
is  occupied  entirely  by  other  businesses.  The  people  of 
Petrograd  are,  however,  very  proud  of  their  "  Gostinny 
Dvor,"  a  series  of  arcades  containing  shops  of  every 
description,  and  one  of  the  favourite  haunts  of  the  ladies. 
The  Morskaia,  a  short,  but  imposing  street  leading  out  of 
the  Nevski,  has  some  fine  bank  and  insmance  buildings, 
but  there  are  no  other  streets  comparable  to  the  Strand 
or  Oxford  Street.  Canals  intersect  the  town  in  every 
direction,  the  Neva  divides  it,  and  the  gold  ai)d  blue 


THE  BIG  CITIES  61 

domes  of  Russian  churches  are  seen  everywhere.  Never- 
theless, Petrograd  is  the  least  Eussian  of  Russian  towns, 
unless  Warsaw  be  excepted.  Yet  it  is  not  a  continental 
town.  There  are  no  outdoon  cafes,  little  in  the  way  of 
kiosks,  very  few  cabarets.  There  are  three  or  four  very 
good  hotels:  the  largest  and  newest,  the  "Astoria,"  was 
almost  entirely  German,  and  has  been  commandeered  by 
the  Government ;  the  "  Europe,"  the  best  known  and 
busiest ;  and  the  "  Angleterre,"  a  very  comfortably  and 
well-managed  hotel,  where  I  made  my  headquarters, 
are  the  three  principal  hotels.  All  are  equipped  with 
telephone  in  each  bedroom,  and  the  charges  before  the 
war  would  bear  favourable  comparison  with  those  of 
smaller  cities.  The  day  porter  usually  speaks  English,  but 
one  has  to  depend  upon  Russian  for  the  rest  of  the  staff. 
German  influence  predominated  in  Petrograd,  even  the 
banks  kept  their  accounts  in  German.  This  has,  of  course, 
been  changed,  and  all  German  names  have  been  taken 
down  from  shops,  restaurants,  etc.  There  is  a  British  club 
here  known  as  the  New  British  Club,  as  there  is  an  old 
club  called  the  "  British  Club,"  the  membership  of  which 
is  almost  entirely  confined  to  the  Russian  aristocracy, 
and  which,  I  believe,  contains  not  a  single  Britisher. 
The  membership  of  the  New  British  Club  is  composed  of 
newspaper  correspondents,  Enghsh  managers  of  the  cotton 
and  other  mills  in  the  neighbourhood,  representatives  of 
British  houses,  some  attaches  of  the  Embassy,  and  a  few 
Americans.  In  fact,  in  most  of  the  English  clubs  in  Russia 
Americans  are  equally  welcome. 

The  traveller,  and  especially  the  business  man,  should 
guard  against  forming  definite  conclusions  about  Russia 
simply  from  a  visit  to  Petrograd.  It  is  a  good  starting 
point,  if  only  from  the  fact  that  as  the  seat  of  Govern- 
ment it  is  central  for  statistics  and  general  information, 
but  certainly  no  agent  should  be  appointed  in  Petro- 


^  COMMERCIAL  RUSSIA 

grad  for  the  whole  of  Russia  until  other  parts  had  been 
visited,  no  matter  how  plausible  the  tale  told.  There  is 
a  Russo-British  Chamber  of  Commerce  at  Petrograd, 
but  as  none  of  the  officials  speak  Enghsh,  save  one  young 
clerk,  information  is  not  very  accessible.  I  had  a  con- 
versation with  the  secretary  in  French,  and  he  was  very 
courteous  and  anxious  to  give  all  the  help  possible,  but 
I  found  the  service  of  and  information  given  by  the 
Chamber  ot  a  very  meagre  and  unreHable  quahty,  and 
do  not  think  that  British  representatives  can  look  for 
any  real  help  from  that  quarter.  On  the  other  hand, 
Mr.  Henry  Cooke,  the  Commercial  Attache  at  the  British 
Embassy,  was  exceedingly  helpful  and,  though  hampered 
by  the  lack  of  even  an  office  room  or  a  typist  of  his  own, 
himself  wrote  out  the  information  I  desired,  and  in  the 
hospitahty  of  his  own  home  on  several  occasions  discussed 
at  length  the  problems  of  Russian  trade  and  methods. 

Moscow,  with  its  KremHn  and  its  historical  associa- 
tions, is  the  pride  of  every  Russian.  Beautifully  situated 
on  roUing  hills,  from  one  of  which  Napoleon  saw  the  fire 
which  blasted  his  hopes,  one  gets  the  first  real  sense  of  the 
Russian  atmosphere.  There  is  no  other  city  just  like  it 
or  nearly  resembUng  it.  There  is  nothing  cosmopolitan 
about  Moscow.  It  is  pure,  unadulterated  Russian  from 
the  KremHn,  the  Mecca  of  all  true  Russians,  to  the  Sun- 
day street  market  near  the  old  water  tower.  The  Kremlin 
is  the  old  walled-in  city.  It  contains  a  palace,  three  or 
four  churches,  some  monuments  and  a  number  of  small 
palaces,  now  used  as  administrative  buildings.  The  shops 
and  streets  of  Moscow  will  bear  comparison  with  those  of 
any  city.  The  only  department  store  in  Russia  is  here — 
Muir  and  Merrilees'  establishment — and  it  would  do  credit 
to  London.  Nearly  every  branch  of  merchandise  is  repre- 
sented, and  the  annual  turnover  runs  into  milhons  of 
roubles.     Its  management  is  entirely  British,  the  chief 


THE  BIG  CITIES  63 

directors  being  the  brothers  Cazelet,  nephews,  I  believe, 
of  the  original  proprietors.  The  building  is  quite  a  large 
one,  standing  alone,  and  is  situated  in  the  centre  of  the 
city  with  a  good-sized  annexe  on  the  other  side  of  the 
street.  It  is,  however,  emphatically  a  Russian  store, 
and  deals  generally  in  the  better  class  of  goods.  The 
refreshment  rooms,  which  are  liberally  patronised  by 
Muscovites,  whether  customers  or  not,  is  one  of  the 
features  of  Moscow.  The  waitresses  are  of  a  very  superior 
class,  well-educated,  and  of  charming  manners.  At  first 
they  had  difficulty  in  getting  this  class  of  girls,  and  when 
one  of  them  came  to  the  directors  crying,  with  the  ex- 
planation that  she  had  been  insulted  by  being  offered  a 
tip,  there  was  a  danger  of  a  resignation  in  a  body.  The 
difficulty  was  overcome  by  getting  another  set  of  girls, 
or  rather  women,  who  are  more  soberly  dressed.  The 
waitress  now  takes  the  order,  and  brings  the  refreshments, 
while  the  others  clear  away  the  dishes,  give  the  bill  and 
take  the  tip  without  any  compunction.  Lessons  in  Eng- 
lish are  given  to  members  of  the  staff  every  day  by  ex- 
perienced teachers,  certain  members  being  released  from 
other  duties  for  the  purpose  at  different  times  of  the  day. 
The  Koonesti  Most  (Blacksmith's  Bridge)  is  the  Bond 
Street  of  Moscow,  and  has  a  number  of  really  first-class 
shops.  A  new  series  of  arcades  has  recently  been  built 
in  the  Eed  Square  opposite  the  Kremlin.  I  have  seen 
nothing  like  it  elsewhere.  It  covers  a  very  large  area, 
and  contains  avenue  after  avenue  with  some  hundreds 
of  handsome  shops.  There  are  several  good  shopping 
streets,  while  one  important  street,  the  Myasnitskskaia, 
is  largely  occupied  by  firms  deahng  in  machinery,  engineer- 
ing, tools,  etc. 

Moscow  is  the  richest  city  in  Russia.  It  invariably 
outranks  Petrograd  in  its  charitable  collections.  Its 
manufacturers  and  merchant  princes  are  many  of  them 


64  COMMERCIAL  RUSSIA 


d 


millionaires.  It  is  the  centre  of  a  huge  manufacturing 
district,  extending  a  couple  of  hundred  miles  in  every 
direction.  It  is  surrounded  by  scores  of  small  manufac- 
turing towns  that  pay  it  tribute  by  their  purchases.  It 
is  the  distributing  centre  of  the  entire  Russian  railway 
system.  Though  not  a  port,  it  has  its  own  Customs 
House.  It  is  the  headquarters  of  most  of  the  British 
firms  estabUshed  in  Russia. 

Moscow  offers  the  greatest  possibihties  to  British 
manufacturers  of  any  city  in  Russia.  In  everything 
required  by  the  numerous  textile  industries  of  Russia,  an 
agent  in  Moscow  can  cover  the  ground.  If  only  one  agent 
is  required  in  Russia  in  other  lines,  Moscow  is  with  few 
exceptions  the  best  centre,  though  as  pointed  out  else- 
where, agents  in  other  districts  are  often  desirable. 

Moscow  has  two  first-class  hotels,  the  National  and  the 
Metropole.  They  are  somewhat  superior  to  those  at 
Petrograd.  A  feature  of  the  hotels  in  large  Russian 
cities  is  that  one  can  telephone  from  one's  bedroom 
direct  to  anyone  on  the  telephone  exchange  without  pay- 
ment. If  your  room  is  No.  419  at  the  National,  then 
419  National  is  your  telephone  number,  and  your  room 
your  ofiice.  A  telephone  directory,  a  writing  table  with 
electric  reading  lamp  is  part  of  the  equipment.  The 
numbers  in  the  telephone  directory  are  always  divided 
thus  1-35-17,  so  that  if  you  want  number  13517,  you 
ask  for  "  one,  thirty-five,  seventeen."  Nearly  everyone 
has  a  telephone,  there  are  no  exchanges,  and  so  the 
numbers  run  into  high  figures. 

The  English  Club  in  Moscow  has  its  headquarters  at 
the  National  Hotel,  where  it  has  a  suite  of  rooms.  Its 
members  are  mostly  agents  or  representatives  of  British 
firms,  and  some  managers  of  local  factories,  with  a  few 
Americans. 

The  Consulate  was  at  the  time  of  my  visit  in  charge  of 


THE  BIG  CITIES  65 

Vice-Consul  Lockhart,  Acting  Consul,  who,  as  the  sole 
representative  of  British  interests  in  the  city,  has  a  great 
deal  of  more  or  less  diplomatic  functions  to  attend  to, 
precluding  him  from  giving  that  attention  to  commercial 
matters  that  he  would  probably  desire.  More  time  can 
be  profitably  spent  in  Moscow  than  in  any  other  city,  but 
even  now  there  remain  places  to  be  visited  before  one 
can  say.  that  he  has  seen  Eussia,  or  thoroughly  under- 
stands the  problem  he  has  set  out  to  investigate. 

Odessa  is  the  most  cosmopohtan  city  in  Russia.  Here, 
for  the  first  time,  are  found  open-air  cafes,  and  the  usual 
indications  of  a  continental  city.  It  is  very  enterprising, 
one-third  of  the  population  being  Jews,  among  the 
shrewdest  of  Russia's  population.  There  is  a  business 
activity  seen  in  no  other  Russian  town,  and  the  two 
leading  cafes  are  practically  exchanges  where  everyone 
meets  between  II  and  12  a.m.  Shipping  and  the  export 
of  grain  are  its  principal  business,  though  there  is  a 
thriving  trade  in  normal  times  in  agricultural  machinery 
and  general  merchandise.  It  is  the  centre  of  a  busy 
district,  as  well  as  the  principal  port  in  South  Russia, 
and  the  chief  point  of  distribution  in  the  Crimea.  While 
there  are  some  excellent  firms  and  rehable  agents  in 
Odessa,  no  town  in  Russia  requires  such  careful  handhng 
if  one  wishes  to  avoid  difficulties  and  bad  debts,  and  all 
that  has  been  said  about  the  necessity  for  caution  applies 
with  double  force  to  Odessa. 

The  London  and  the  Petrograd  are  the  two  principal 
hotels,  but  are  not  up  to  the  standard  of  those  at  Moscow 
and  Petrograd. 

The  British  Consul,  Mr.  J.  F.  Bagge,  has  recently  been 
promoted  to  the  position,  after  serving  several  years  as 
Vice-Consul  in  various  parts  of  Russia.  I  found  him 
very  enthusiastic  and  painstaking,  and  he  rendered  me 
valuable  assistance,  as  did  a  veteran  employee  who  has 


66  COMMERCIAL  RUSSIA 


1 


served  under  succeeding  consuls  and  is  a  well-informed 
man. 

There  is  a  Russo-British  Chamber  of  Commerce  here 
affiliated  with  the  one  in  Petrograd,  but  it  is  of  very 
httle  practical  use,  except  perhaps  in  distributing  cata- 
logues. The  fact  that  an  appHcant  for  an  agency  is  a 
member  is  no  guarantee  in  itself,  as  many  people  appear 
to  join  for  this  purpose. 

With  the  opening  of  the  Dardanelles,  Odessa  is  looking 
for  big  developments,  but  she  is  being  closely  overhauled 
by  Nikolaiev  and  Kherson,  two  neighbouring  ports,  and 
as  the  new  hne  of  railway  from  Europe  through  the 
Crimea  and  on  to  the  Caucasus  sidetracks  Odessa  and 
passes  through  the  other  two  towns,  they  will  probably 
gain  at  Odessa's  expense. 

As  this  book  is  written  chiefly  from  the  business  stand- 
point, and  is  an  impression  of  the  writer's  own  personal 
experience  and  investigation,  very  little  can  be  said  about 
Warsaw,  which  was  at  the  time  of  his  visit  in  the  hands  of 
the  enemy.  Half  Pohsh,  half  Jewish,  its  manufactures 
and  business  largely  controlled  by  the  latter,  it  is  doubtful 
if  it  will  for  some  time  regain  its  former  prosperity,  though 
as  the  capital  of  an  independent  Poland  it  may  do  so 
under  different  auspices. 

Rostov-on-Don  is  a  thriving  port  on  the  Sea  of  Azov, 
in  the  centre  of  one  of  the  richest  agricultural  districts 
in  Russia,  and  contiguous  to  the  large  Donetz  basin  with 
its  great  iron-works  and  coal-fields.  The  principal  street 
is  a  magnificent  thoroughfare,  well  Uned  with  good-class 
shops  and  a  fine  hotel,  the  "  Morskaya."  Some  of  the  lead- 
ing British  manufacturers  of  agricultural  machinery  and 
implements  have  their  own  warehouses  and  representa- 
tives here.  The  Northern  Caucasus  to  Vladikavkaz, 
and  the  rich  country  between  the  Don  and  the 
Volga   are   suppHed  from  Rostov,  and   this   district   is 


THE  BIG  CITIES  67 

the  one  usually  claimed  by  and  granted  to  agents  in 
Eostov. 

Baku,  with  its  300,000  inhabitants,  is  much  more  than 
being  merely  the  centre  of  the  oil-fields.  Swept  by  the 
winds  of  the  Caspian  Sea,  permeated  with  the  smell  of 
petroleum,  almost  entirely  devoid  of  vegetation,  even 
in  summer,  it  is  not  an  attractive  city  in  some  respects. 
But  here  east  and  west  meet — Mohammedan  Mosque, 
Russian  Church  and  Jewish  Synagogue  share  the  honours 
of  architecture,  while  Tartar,  Armenian,  Persian,  Georgian, 
and  a  score  of  other  nationalities  far  outnumber  the  native 
Russian.  Veiled  Mohammedan  women  parade  the  streets, 
camels  stand  in  the  squares,  Mecca  pilgrims  with  beards 
stained  red  are  met,  the  cabbies  encourage  and  swear  at 
their  horses  in  an  Asiatic  tongue,  and  the  old  one-horse 
trams  lumber  along  through  the  streets.  At  the  docks  and 
wharves  the  Volga  steamers  unload  their  cargoes,  the 
fishermen  deposit  their  sturgeon  and  caviare  (for  this  is 
the  chief  depot  for  the  latter),  and  vessels  come  and  go 
across  the  Caspian  Sea  to  Persia. 

Baku  is  the  highway  to  Persia  and  Central  Asia,  and 
derives  considerable  of  its  importance  from  this  fact, 
although,  of  course,  its  chief  source  of  wealth  is  the  oil- 
fields and  refineries,  which  form  part  of  the  town,  and  do 
not  lie  at  some  distance,  as  often  supposed. 

A  small  EngHsh  club,  to  which  both  Americans  and 
Russians  are,  however,  eligible,  is  composed  chiefly  of 
Enghshmen  identified  with  the  oil  industry.  Near  by  is 
the  British  Vice-Consulate,  where  Mr.  McDonnell  is  always 
ready  to  talk  of  the  development  of  the  oil-fields  and  the 
opportunities  for  British  trade. 

The  recent  supply  of  water  to  Baku  offers  exceptional 
advantages  for  manufacturers  of  sanitary  appliances,  etc., 
while  the  proposed  electrification  of  the  tramways  will 
open  up  possibihties  in  that  direction.     Baku  is  one  of 


68  COIVIMEKCIAL  EUSSIA 

the  districts  reached  by  very  few  of  the  agents  in  other 
parts  of  Russia,  and  the  Southern  Caucasus  deserves  and 
should  command  exceptional  treatment. 

Omsk,  while  scarcely  coming  under  the  category  of 
large  cities,  deserves  special  mention  as  the  most  im- 
portant city  in  Siberia.  It  has  about  one  hundred  thou- 
sand inhabitants,  is  four  days'  railway  ride  from  Moscow, 
and  Hes  a  few  hmidred  miles  over  the  Asiatic  border.  It 
is  in  the  heart  of  one  of  the  richest  agricultural  districts 
of  Siberia,  and  more  particularly  that  part  of  the  country 
devoted  to  the  production  of  butter.  The  Ob  and  Irtish 
rivers  afiord  communication  with  a  large  area,  not  other- 
wise covered,  while  its  position  on  the  line  of  the  Trans- 
Siberian  Railway  connects  it  with  all  parts  of  the  Empire. 
It  is  a  typical  Siberian  town,  lying  about  three  miles  from 
the  station,  the  drive  being  across  commons  with  no 
attempt  at  made  roads,  the  tracks  being  either  very  dusty 
or  very  muddy  in  summer.  One  very  short  street  contains 
the  banks,  post-office  and  the  principal  shops.  There  is 
nothing  worthy  of  the  name  of  an  hotel  in  the  place  ;  in 
fact,  in  this  part  instead  of  using  the  word  "  Gosteneetsa," 
the  Russian  equivalent  of  hotel,  they  call  them  "  Nom- 
meras "  or  numbers,  the  suggestion  being  that  they 
only  reckon  to  furnish  "  numbers  "  or  rooms,  and  not  to 
pro\dde  meals,  which  have  to  be  obtained  outside  in  the 
restaurants.  However,  there  are  very  decided  indications 
of  substantial  improvements.  Some  splendid  educational 
estabhshments  have  been  erected,  including  an  agricul- 
tural coUege  ;  a  new  hotel  will  soon  be  built,  and  there 
is  a  general  spirit  of  enterprise  abroad  that  indicates  a 
remarkable  change  and  development  after  the  war.  A 
big  business  is  done  in  agricultural  machinery,  and  the 
International  Harvester  Co.  have  one  of  their  principal 
branches  here.  The  British  Vice-Consul  is  Mr.  S.  K. 
Randrup,  a  Dane,  who  came  here  about  twenty-five  years 


THE  BIG  CITIES  69 

ago  to  develop  the  butter  business,  has  since  added  the 
manufacture  of  ploughs  and  the  sale  of  agricultural  imple- 
ments, and  is  now  a  millionaire.  He  gets  an  office  allow- 
ance only  from  the  British  Government,  and  keeps  a 
young  man  who  speaks  English  to  attend  to  the  details  of 
the  Consulate,  although  he  and,  in  fact,  all  his  family 
speak  English.  He  is  quite  English  in  his  sympathies  and 
outlook,  and  very  keen  on  promoting  British  trade.  When 
I  found  that  the  Consulate  cost  him  about  £200  a  year 
more  than  he  received,  I  inquired  why  he  held  the  position, 
and  found  that  it  was  on  account  of  the  prestige.  As  the 
British  representative,  he  takes  a  prominent  part  in  all 
pubhc  functions  ;  the  Governor  of  the  Province  and  him- 
self are  the  only  two  allowed  to  have  motor-cars,  the  rest 
being  commandeered.  While  I  was  sitting  in  his  office,  he 
was  called  up  on  the  phone  by  the  Chief  of  Police,  who 
expressed  a  desire  to  see  him  on  some  official  business. 
"  If  the  Chief  of  Pohce  wishes  to  see  the  British  Consul 
he  can  find  him  here  between  3  and  5  this  afternoon,"  was 
the  reply.  Then,  with  a  smile,  Mr.  Eandrup  said  to  me,  as 
he  hung  up  the  receiver,  "  That's  what  I  pay  £200  a  year 
for." 

As  illustrating  the  prestige  enjoyed  by  British  Vice- 
Consuls  and  their  consequent  wiUingness  to  accept  the 
posts  for  nominal  fees,  a  httle  illustration  may  be  given. 
When  war  broke  out  between  Eussia  and  Germany  and 
before  England  had  joined,  a  demonstration  was  made 
outside  the  office  of  a  British  Vice-Consul  in  a  southern 
Russian  port.  The  Consul  gave  a  sympathetic,  but 
guarded  speech  to  the  demonstrators,  but  was  asked  if 
England  was  going  to  join  Russia.  He  expressed  the 
personal  opinion  that  it  would.  "  Give  it  to  us  in  writing," 
said  his  interlocutor,  perfectly  satisfied  that  with  such  a 
document  from  the  Vice-Consul  Great  Britain  would  be 
irretrievably  committed. 


to  COMMERCIAL  RUSSIA 

Mr.  Randrup  is  very  strongly  of  opinion  that  agencies 
given  for  Russia  should  not  include  Siberia,  as  there  is 
a  prejudice  in  favour  of  doing  business  direct,  and  not 
thi'ough  Moscow.  Omsk  is  undoubtedly  a  ''  coming  "  city, 
though  it  will  have  a  strong  rival  in  Novo-Nikolaievsk, 
about  one  hundred  miles  further  east,  and  which  is  making 
progress  only  comparable  with  that  of  the  western  cities  of 
the  United  States  and  Canada. 

Kiev  is  the  only  rival  to  Moscow  in  historical  associa- 
tions, magnificent  streets  and  splendid  shops.  It  is  the 
headquarters  of  the  numerous  sugar  refineries  of  the 
adjoining  provinces  or  governments,  as  they  are  called. 
From  the  appearance  of  the  shops,  apparently  nothing 
can  be  too  good  or  too  high  priced  to  be  sold  in  Kiev, 
and  those  with  articles  of  luxury  should  especially  see 
that  they  are  represented  in  this  town.  Kiev  Hes  about 
half-way  between  Moscow  and  Odessa,  and  has  a  popula- 
tion at  the  present  time  of  nearly  a  miUion. 

Of  Lodz  and  Riga  little  can  be  said  other  than  what 
has  already  been  said  about  Warsaw.  Many  of  the 
factories  of  the  former  town,  not  under  German  control, 
have  been  moved  further  into  the  interior  of  Russia,  and 
will  probably  remain  there  ;  those  owned  and  managed 
by  Germans  will  hardly  start  up  again  at  any  rate  for 
some  time  after  the  war.  Riga  will  naturally  continue  to 
be  one  of  the  principal  ports  of  entry  into  Russia,  and  be 
freer  from  German  influence  than  it  has  been  in  the  past, 
but  is  dealt  with  more  particularly  in  the  chapter  on  Ports. 


VII 
THE    SMALLER    TOWNS 

Their  commercial  importance  —  Kharkov  —  Ekaterinoslav — Tver — Tiflis — 
The  Turkestan  towns — Archangel — Vologda— Tula — The  Crimea  towns. 

IN  the  preceding  chapter  some  little  account  has  been 
given  of  the  principal  cities,  not  so  much  from  the 
standpoint  of  population  as  from  their  importance  as 
buying  and  distributing  centres.  It  may  now  be  interest- 
ing to  give  a  brief  description  of  some  of  the  smaller  towns, 
dealing  with  them  rather  from  the  business  point  of  view 
than  attempting  to  describe  their  cathedrals  and  points 
of  personal  interest,  already  covered  by  other  writers. 

It  should  be  remembered  that  these  towns  have  an  im- 
portance and  a  buying  capacity  much  in  excess  of  similar- 
sized  towns  in  this  country.  They  are  usually  some  hun- 
dreds of  miles  distant  from  other  towns,  and  hence  draw 
on  the  intervening  population  as  well  as  their  own.  Most 
of  them  are,  however,  covered  by  the  distributing  agencies 
and  wholesale  dealers  in  the  larger  cities,  and  it  is  only 
in  articles  of  very  general  consumption  that  any  direct 
business  connection  is  desirable.  Nevertheless,  the  British 
manufacturer  should  see  that  he  is  represented  in  these 
towns,  and  that  they  are  visited  by  his  agent.  A  much 
better  idea  of  Russia,  its  requirements  and  conditions, 
can  often  be  obtained  from  these  places  than  from  the 
larger  cities. 
/There  cannot  be  the  least  doubt  that  the  new  Russia 

ill  have  both  sentimental  and  practical  reasons  for  a 


f 


72  COMMEKCIAL  RUSSIA 

strong  leaning  towards  closer  commercial  relations  with 
Great  Britain,  and  it  is  also  certain  that  there  will  be 
a  greatly  increased  demand  for  the  goods  we  can  supply. 
There  is  a  huge  leeway  to  make  up,  and  in  the  first  in- 
stance probably  the  simplest  forms  of  labour-saving 
machines  will  be  most  needed,  but  as  these  increase  pro- 
duction and  wealth,  more  compUcated  machinery  will  be 
required.  But  the  most  rapid  development  may  be  ex- 
pected in  the  towns  and  so-called  villages,  although  many 
of  them  have  populations  ranging  from  20,000  to  30,000 
inhabitants.  There  are  1,230  municipal  areas  in  Russia, 
and  of  these  only  162  are  lighted  by  electricity  and  128 
by  gas,  while  the  others  depend  on  oil  lamps.  Only  219 
municipalities  have  a  proper  system  of  water  supply,  and 
it  is  almost  incredible  that  no  more  than  65  have  a  drainage 
system.  It  is  also  remarkable  enough  that  only  54  have 
a  service  of  tramways,  32  are  equipped  with  telegraphs, 
and  314  with  telephones.  The  villages,  which  we  should 
call  good-sized  towns,  are  entirely  devoid  of  these  facih- 
ties,  but  we  may  be  very  sure  that  it  will  not  be  long 
before  there  is  an  urgent  demand  for  such  amenities.  In 
this  direction  alone,  therefore,  we  see  the  possibihty  of  a 
huge  demand  for  capital  and  appliances,  and  as  the  work 
will,  to  a  great  extent,  be  taken  in  hand  by  the  municipal 
authorities,  there  will  be  practically  no  risk  of  loss. 

Kharkov,  sometimes  spelt  Charkoff,  is  a  town  of  300,000 
inhabitants,  484  miles  south  of  Moscow.  It  is  a  university 
town,  and  the  administrative  centre  of  the  great  iron 
industry  and  coal  mines  of  South  Russia.  Important 
fairs  are  held  there  three  times  a  year.  Agents  should 
be  appointed  here  for  businesses  in  touch  with  the  iron 
works  and  collieries,  and  it  is  a  good  centre  also  for  general 
merchandise. 

Ekaterinoslav,  further  south  and  still  within  the  mining 
district,  has  also  nearly  300,000  inhabitants,   of  which 


THE  SMALLER  TOWNS  73 

25  per  cent,  are  Jews.  The  main  street,  Catherine  Pros- 
pect, is  nearly  three  miles  long,  and  has  some  excellent 
shops.  A  great  deal  of  mining  and  other  machinery,  as 
well  as  agricultural  implements,  are  sold  here. 

K;  Tver,  300  miles  from  Petrograd,  on  the  road  to  Moscow, 
has  nearly  100,000  inhabitants,  most  of  whom  are  depen- 
dent upon  the  immense  Morozov  Cotton  Mill  and  other 
local  factories. 

Tiflis,  in  the  Lower  Caucasus,  is  about  the  same  size 
as  Baku,  but  while  much  more  interesting,  has  not  the 
same  commercial  importance.  It  is  a  great  market  for 
Persian  rugs,  and  its  bazaars  are  redolent  of  the  East  in 
more  respects  than  one.  These  occupy  a  distant  part 
of  the  town  where  narrow  streets,  shops  without  windows, 
and  every  kind  of  Oriental  dress  prevail.  The  town 
proper  has  some  excellent  streets  and  fine  shops  as  well 
as  one  or  two  good  hotels.  To  go  north  from  Tiflis,  one 
has  either  to  go  back  to  Baku  and  by  rail  up  the  coast, 
or  else  coach  over  the  Georgian  military  road  of  about 
150  miles  to  Vladikavkaz.  This  is  a  delightful  trip,  of 
which  much  could  be  written  were  this  a  book  of  travel. 

On  the  other  side  of  the  Caspian  Sea  from  Baku  is  that 
part  of  Southern  Asiatic  Russia  known  as  Turkestan, 
and  bounding  Persia  and  Afghanistan.  The  four  principal 
towns,  Bokhara,  80,000  ;  Samarkand,  90,000  ;  Kokand, 
114,000 ;  and  Tashkend,  272,000,  are  all  more  Persian 
than  Russian ;  in  fact,  there  are  very  few  Russians  here. 
The  chief  sights  are  the  bazaars,  which  are  thronged  by 
Persians,  Kirghizes,  Hindoos,  Armenians,  Tartars,  Afghans 
and  Turcomans.  Most  of  the  business  with  Europe  comes 
through  Baku,  though  several  direct  inquiries  are  being 
received  in  this  country,  and  direct  business  seems  to  be 
developing. 
Archangel  in  normal  times  has  little  to  recommend  it. 

,  It  is  the  great  shipping  port  of  Russian  timber,  and  huge 


74  COMMERCIAL  RUSSIA 

sawmills  line  the  banks  of  the  Dvina  on  its  way  to  the 
White  Sea.  Some  imports  for  Siberia  and  Eastern  Russia 
come  through  this  port.  The  vessels  get  most  of  their 
supplies  of  ropes,  etc.,  when  in  Norway  or  England,  and 
so  avoid  the  heavy  customs  duties.  Ordinary  trade  is 
confined  to  the  supply  of  its  100,000  inhabitants,  but,  as 
Archangel  is  over  500  miles  from  Petrograd  or  Moscow, 
there  is  considerable  direct  trading,  and  in  most  cases  a 
local  agent,  if  obtainable,  is  desirable. 

Vologda  is  a  typical  Russian  town  of  40,000  inhabi- 
tants, noted  for  its  manufacture  of  Russian  lace,  which 
is  made  by  the  peasants  in  their  homes,  and  collected  by 
one  or  two  women  who  trade  from  their  own  houses,  and 
one  has,  therefore,  to  make  inquiries  in  order  to  discover 
where  it  is  sold.  It  is  an  important  railway  junction. 
In  towns  of  this  kind  it  is  impossible  to  find  anyone  speak- 
ing EngUsh,  but  there  is  the  usual  run  of  ordinary  shops, 
and  they  should  not  be  neglected. 

The  next  town  west  is  Viatka,  300  miles  distant,  with 
a  population  of  50,000.  A  branch  line  runs  north  to  Kotlas, 
whence  steamer  trips  may  be  taken  to  Archangel. 

Perm,  still  another  300  miles  west,  has  70,000  people, 
and  is  the  capital  of  the  Government  of  the  same  name, 
and  the  beginning  of  the  Ural  mining  district,  of  which 
Ekaterinburg  (see  separate  chapter)  is  the  centre. 

Tula,  121  miles  south  of  Moscow,  has  about  150,000 
inhabitants,  and  is  the  Birmingham  of  Russia.  The  Tula 
wares,  consisting  of  objects  in  brass,  samovars,  nickel- 
plate,  iron  and  steel,  are  widely  known.  Black  enamel 
inlaid  with  silver  is  a  speciaUty,  known  as  Tula  work. 
This  is  a  good  centre  for  raw  material  used  in  these  manu- 
factures, but  most  of  the  business  is  done  through  the 
agents  at  Moscow. 

Orel,  a  Httle  more  than  100  miles  further  south, 
with   100,000    population,    and   Kiusk,    200  miles,   also 


THE  SMALLER  TOWNS  75 

with  nearly  100,000,  are  ordinary  Russian  agricultural 
towns. 

The  Volga  towns  from  Nijni-Novgorod,  Kazan,  Simbirsk, 
Samara,  Saratov  and  Tsaritzin,  full  of  historical  interest 
as  many  of  them  are,  leave  little  to  be  said  from  the  busi- 
ness standpoint.  They  are  better  built  towns  than  those 
in  the  north,  have  fine  streets  and  handsome  shops,  and 
Saratov  is  an  excellent  centre  for  trade.  At  Tsaritzin, 
the  Government  has  granted  Vickers,  Ltd.,  a  concession 
for  fifteen  years  for  a  gun  works,  which  occupies  a  two- 
mile  river  frontage  and  a  total  area  of  2,000  acres. 

Yaroslavl,  174  miles  north  of  Moscow,  is  an  important 
manufacturing  town,  and  one  of  the  oldest  in  Russia. 
Its  principal  industries  are  a  big  cotton  mill,  founded 
in  1722,  and  tobacco  and  linen  factories. 

Nijni-Novgorod,  in  addition  to  its  importance  on  account 
of  its  annual  fair,  is  also  a  busy  manufacturing  place,  and 
does  a  large  trade  in  flour,  iron,  salt  and  petroleum. 
Lying  at  the  junction  of  the  Oka  and  Volga  rivers,  it  is 
the  head  of  the  principal  navigation  of  the  latter  river. 

Orenburg,  on  the  eastern  border  of  European  Russia, 
is  noted  for  its  rectangular  and  fortress-Hke  trading 
factory,  provided  with  four  gates  and  surrounded  on  three 
sides  by  shops.  In  this  hall  are  sold  rugs  and  shawls 
from  Bokhara  and  Turkestan  ;  also  the  white  and  grey 
"  Orenburg  shawls,"  made  of  goats'  wool,  so  finely  knitted 
that  the  largest  of  them  will  pass  through  a  ring,  the 
best  specimens  costing  as  much  as  £6  the  square  yard. 

The  Crimea  towns,  Yalta,  Sevastopol,  Eupatoria,  etc., 
are  high-class  seaside  resorts,  vieing  with  the  Riviera 
in  climate  and  conditions,  and  surpassing  it  with  their 
extravagant  luxury.  It  is  a  good  market  for  the  highest 
class  commodities,  much  of  the  wholesale  and  distributing 
trade  being  done  from  Odessa. 


VIII 
THE   QUESTION   OF   CREDIT  AND   LAW 

Difficulties  greatly  exaggerated — Situation  changed — Russians  paying  cash — 
Former  methods — The  abolition  of  vodka  and  its  influence  on  credit- 
Improvement  in  agricultural  situation — Cheques  practically  unknown — 
Methods  of  collection — New  law  safeguarding  creditors — Business  safe  mth 
ordinary  precautions — Russian  law. 

THE  question  of  credit  and  Eussian  law  plays  such 
an  important  part  in  the  discussion  of  Russian 
commercial  problems  that  it  may  perhaps  be  worth  a 
chapter  to  itself.  It  has  almost  become  a  platitude  to  say 
that  credit  of  from  one  to  two  years  was  necessary  in 
order  to  do  business  with  Russia,  and  that  one  of  the 
chief,  if  not  the  main,  causes  of  Germany's  successful 
exploitation  of  the  country  arose  from  the  fact.  I  devoted 
considerable  time  to  the  investigation  of  this  subject, 
and  discussed  it  with  everyone  I  met  in  the  course  of 
business — the  Commercial  Attache,  the  Consuls  and  Vice- 
Consuls,  manufacturers,  merchants  and  professional  men. 
I  came  to  the  conclusion  that  the  difl&culties  of  credit 
had  been  very  largely  exaggerated,  and  that  the  changes 
that  have  taken  place  have  entirely  altered  the  conditions 
of  credit  that  were  prevalent  before  the  war. 

It  has  often  been  explained  that  Russia,  being  an 
agricultural  country,  was  almost  entirely  dependent  upon 
her  crops  for  payment  for  her  imports,  and  that  such  pay- 
ments could  not  be  made  until  the  harvest  was  gathered 
in.  This  is  true  to  some  extent,  and  appHes  particularly 
to  the  purchase  of  agricultural  machinery  and  supplies. 
But  notwithstanding  this,  it  is  also  a  fact  that  the  long 

76 


THE  QUESTION  OF  CEEDIT  AND  LAW      77 

credits  were  not  so  much  asked  for  by  the  Russians  as 
profiered  by  the  Germans  as  an  inducement  to  purchase. 
In  this  they  showed  a  Mephistophelean  knowledge  of  the 
Russian  character.  As  someone  put  it  to  me,  *'  The 
Russian  argues,  "^  If  I  do  not  have  to  pay  for  a  year,  I  may 
not  have  to  pay  at  all ;  anything  may  happen  in  that 
time,  or  I  may  be  dead.'  So  he  signs  the  bill,  the  year 
goes  round,  and  he  is  faced  with  the  realities  of  the  situa- 
tion." 

But  there  are  three  factors  that  have  completely  changed 
the  question  of  after- war  credit.  For  three  years  the 
Russians  have  been  accustomed  to  pay  cash  for  every- 
thing they  bought.  It  has  already  become  a  habit — cash 
not  merely  for  imports,  but  the  tradesmen  have  had 
to  pay  cash  to  the  local  manufacturers,  the  retailers  to 
the  wholesale  dealers,  and  the  consumers  to  the  shop- 
keeper. Russian  manufacturers  told  me  that  never  again 
would  they  give  such  long  credits  as  they  had  been  accus- 
tomed to  give,  and  that  shopkeepers,  relieved  from  the 
obhgation  of  paying  cash  before  they  got  the  goods,  would 
only  be  too  pleased  to  get  the  shorter  credits  prevaihng 
in  other  countries.  This  will  react  on  the  purchases  made 
by  manufacturers  for  supplies,  and  prompter  payments 
will  be  the  rule  in  every  department  of  business. 

In  the  second  place,  whatever  efforts  Germany  may 
make  to  recapture  the  Russian  market,  and  they  will  be 
very  considerable,  long  credit  will  no  longer  be  one  of 
her  principal  inducements,  for  the  very  obvious  reason 
that  she  will  not  be  in  a  position  to  give  it.  Without 
attempting  to  go  into  the  intricacies  of  banking  and 
finance,  the  methods  hitherto  employed  have  been  some- 
thing like  this :  The  manufacturer  at,  say,  Stuttgart 
took  his  Russian  bills  to  his  local  banker,  who  either 
discounted  them,  or  advanced  heavily  on  them,  the  latter 
in  turn  getting  the  money  on  the  strength  of  the  securities 


78  COMMERCIAL  EUSSIA 

from  the  Deutsche  Bank  at  Berlin.  The  bills  of  this 
bank  in  turn  found  their  way  to  the  London  money 
market,  where  they  were  discounted  with  British  capital, 
and  so  the  Russian  credits  granted  by  Germany  were,  after 
all,  pro\nded  by  the  deposits  of  British  manufacturers 
and  merchants.  Whatever  improvements  may  be  made 
in  our  banking  system,  it  is  safe  to  say  that  this  state  of 
afiairs  will  not  prevail  in  the  future,  if  only  from  the  fact 
that  the  bills  of  the  German  banks  will  not  be  worth 
discounting.  This  will  probably  be  a  stronger  argument 
than  the  patriotic  side  of  the  question.  The  local  German 
banker  wall  not  be  able  to  discount  the  bills  of  the  manu- 
facturer, who  will  require  all  the  capital  he  can  command, 
and  not  be  in  a  position  to  give  the  long  credits  he  has 
hitherto  done.  With  this  formidable  element  of  com- 
petition out  of  the  way,  it  will  be  easier  for  us  to  do  busi- 
ness on  reasonable  terms  of  credit,  especially  with  the 
habit  formed  of  paying  cash. 

But  there  is  another  factor  that  is  far  more  important 
and  has  a  much  greater  bearing  than  these  two.  The 
greatest  event  in  recent  Russian  history  has  not  been  its 
participation  in  the  war,  has  not  even  been  the  revolu- 
tion. The  abolition  of  vodka  has  exerted,  and  will  exert 
a  greater  influence  on  the  future  of  the  Russian  people 
than  both  the  other  events  combined.  It  has  profoundly 
affected  them ;  it  has  made  possible  what  has  been 
achieved  by  Russian  arms  in  spite  of  treachery  and 
robbery  incomparable  ;  it  paved  the  way  for  and  made 
possible  the  greatest  revolution  the  world  has  ever 
seen,  even  if  subsequent  events  have  nullified  its  advan- 
tages, and  it  will  have  an  influence  hardly  conceivable  on 
the  solving  of  the  great  problems  with  which  Russia  is 
confronted,  and  in  lifting  her  up  to  the  highest  pinnacles 
of  political  and  commercial  supremacy. 

Vodka  is  a  clear  spirit,  somewhat  resembhng  gin  in 


t  THE  QUESTION  OF  CEEDIT  AND  LAW      79 

appearance  and  taste,  and  is  claimed  to  be  the  purest 
spirit  made.  It  is  very  rich  in  alcohol.  The  Eussian, 
and  especially  the  Eussian  peasant,  was  not  a  regular 
or  steady  drinker,  but  on  every  holiday — and  there  were 
about  fifty  in  the  year,  besides  Sundays — and  upon  every 
other  excusable  occasion,  he  indulged  in  a  great  spree, 
spent  all  his  money,  and  was  incapacitated  from  work  for 
a  day  or  two  more.  The  abolition  of  vodka  has  done  away 
with  all  this,  and  in  six  months  I  did  not  see  more  than 
two  or  three  men  under  the  influence  of  liquor.  The 
resulting  savings  have  been  enormous,  the  increase  in 
deposits  in  savings-banks  being  very  great.  It  has  made 
an  unprecedented  demand  for  hats,  boots  and  shoes,  and 
other  domestic  comforts,  hitherto  unaffordable.  The 
increased  consumption  of  boots  alone  will  probably  be  not 
less  than  ten  millions  of  pairs  annually.  But  this  is  only 
part  of  the  story.  The  productive  capacity  of  the  people 
has  been  doubled.  Farmers  are  restocking  their  farms, 
improving  the  land  with  fertilisers,  and  purchasing  new 
machinery  and  implements.  They  are  learning  to  pay 
cash,  and  have  the  wherewithal  to  do  it.  A  Siberian 
manufacturer  told  me  that  formerly  the  farmer  took  his 
produce  to  market,  intending  to  buy  a  horse  or  a  cow  out 
of  the  proceeds,  after  reserving  enough  to  pay  his  debts. 
He  met  his  cronies  at  the  market-town,  indulged  in  an 
orgie  of  vodka,  and  came  back  with  insufficient  to  pay 
his  debts.  Now,  he  brings  back  a  horse  and  a  cow,  has 
sufficient  to  pay  his  debts  and  to  buy  more  agricultural 
implements.  Moreover,  he  is  in  a  fit  state  to  get  to  work 
again  at  once.  That  is  the  story  all  over  Eussia,  not 
merely  on  the  farms,  but  also  in  the  workshops  and 
offices.  It  has  a  more  important  bearing  on  the  future 
commercial  development  and  prosperity  of  the  country 
than  can  be  imagined,  and  it  has  entirely  transformed 
the  whole  question  of  long  credits  after  the  war. 


80  COMMEECIAL  RUSSIA 

But,  it  is  often  argued,  the  laws  of  Russia  are  such  as 
to  make  easy  fraudulent  opportunities  of  evading  pay- 
ment. Whilst  this  has  been  true  to  a  great  extent,  it 
has  now  been  considerably  modified.  In  any  case,  it 
only  emphasises  the  importance  of  making  thorough 
inquiries  as  to  the  reputation  and  honesty  of  the  customer, 
as  well  as  to  his  financial  position.  In  some  respects, 
the  laws  were  more  advantageous  to  the  seller  than  in 
our  own  country,  as  a  man  who  failed  to  meet  a  biU  was 
made  bankrupt  with  very  Httle  legal  proceeding.  In 
fact,  as  far  as  possible,  all  credits  should  be  conditioned 
on  a  bill  being  given,  the  seller  then  being  in  a  much  more 
favourable  position. 

Cheques  are  practically  unknown,  and  very  little  used 
in  Russia.  They  must  be  cashed  at  the  bank  of  payment 
within  five  days  of  their  date,  and  are  only  payable  to  the 
person  whose  name  appears  thereon.  If  it  is  a  company 
or  institution,  the  receiver  must  show  his  authority  before 
payment  is  made.  Transactions  are  almost  invariably 
in  cash,  and  much  of  the  delay  in  payment  experienced 
by  Enghsh  manufacturers  has  simply  been  that  the  debtor 
has  been  waiting  for  the  creditor  or  his  agent  to  call  for 
the  money.  I  had  some  long  overdue  accounts  to  collect 
for  a  Manchester  firm.  On  mentioning  the  matter  to  the 
local  Russian  agent  and  intimating  my  intention  to  call 
upon  a  large  firm  to  collect  their  account,  and  asking  him 
why  he  had  not  done  so,  he  was  inexpressibly  shocked. 
"  Why,"  said  he,  "  that  is  a  miUionaire  firm,  and  they 
are  perfectly  safe  for  any  amount."  He  did  not  seem  to 
understand  my  suggestion  that  the  British  manufacturer 
wanted  the  money,  that  it  was  not  a  question  of  lack  of 
confidence.  When  I  approached  the  firm  they  paid  at 
once,  with  the  remark  that  the  agent  could  have  had  it 
at  any  time  if  he  had  asked  for  it.  The  agent  should 
never  be  paid  his  commission  until  the  accounts  have  been 


THE  QUESTION  OF  CREDIT  AND  LAW       81 

collected,  and  should  be  instructed  to  see  that  they  are 
promptly  paid.  If  he  is  not  entrusted  with  the  collection 
himself,  he  should  see  that  the  amounts  are  deposited  to 
the  credit  of  the  Enghsh  firm  through  the  Russian  bank 
with  which  it  does  business.  The  London  branch  of  the 
bank  will  then  be  duly  notified,  and  the  amount  placed 
to  credit  at  current  rates  of  exchange. 

A  great  part  of  the  ten  millions  of  annual  business 
previously  done  by  this  country  with  Russia  was  on  a 
basis  of  cash  or  short  terms  of  credit.  Responsible  Russian 
houses  can  get  the  facihties  from  their  own  banks.  In 
this  connection,  the  following  extract  from  a  letter  recently 
received  from  a  firm  in  Moscow  will  prove  of  interest : 

''  Provided  British  agents  and  merchants  are  able  to 
procure  from  their  bankers  anything  like  the  same  facili- 
ties with  which  German  merchants  and  agents  were  pro- 
vided so  Hberally  in  the  past  by  British  bankers  through 
BerHn,  we  do  not  anticipate  the  shghtest  difficulty  in 
making  adequate  arrangements  with  bankers  in  Russia. 
As  a  general  rule,  so  far  as  our  firm  is  concerned,  it  is  our 
intention  to  pay  British  manufacturers  by  means  of 
London  bank  acceptances  for  all  business  passing  through 
our  hands  in  the  ordinary  way.  Such  acceptances  would 
be  at  convenient  usance,  according  to  the  conditions 
obtaining  at  the  time.  In  cases  where  credit  has  to  be 
given  to  buyers  in  this  country,  we  have  every  reason  to 
beheve  that  all  facihties  necessary  will  be  forthcoming 
from  our  bankers  on  the  spot,  but  it  is  our  strong  con- 
viction that  it  is  in  every  way  inadvisable  for  British 
makers  to  dispose  of  their  goods  in  Russia  on  long  credit 
terms.  By  doing  so^  they  lock  up  a  great  deal  of  capital 
against  a  form  of  securt^  which  they  have  only  the  most 
inadequate  means  to  control,  and  they,  moreover,  give 
encouragement  to  irregular  business  of  the  tjrpe  that 
has  made  Russian  business  so  notorious  in  the  past.    A 


82  COIVIMERCUL  EUSSIA 

large  number  of  entirely  misleading  statements  on  this 
subject  have  appeared  in  the  British  Press  and  Consular 
reports,  emanating  for  the  most  part  from  persons  of 
obviously  indifferent  commercial  experience.  While  we 
are  inclined  to  doubt  very  much  whether  these  statements 
regarding  long  credits  so  strenuously  advocated  have  in 
any  way  convinced  London  bankers  of  the  advisability  of 
countenancing  so  fallacious  a  policy,  we  consider  it  advis- 
able to  throw  out  a  word  of  warning  on  the  subject.  First- 
class  buyers  in  Eussia  experience  no  more  difficulty  in 
securing  the  financial  aid  their  business  deserves  from 
their  local  banking  institutions,  and  on  perfectly  reason- 
able terms,  than  do  the  buyers  of  any  other  coimtry." 

A  new  law  for  the  better  protection  of  creditors  was, 
however,  passed  in  July,  1916,  of  which  the  legal  adviser 
to  the  British  Embassy  at  Petrograd  gives  this  resume  : 

"  The  purpose  of  the  new  law  is,  by  notarial  and  other 
procedure,  as  well  as  by  compulsory  publication  and 
notification  to  the  creditors  concerned,  so  to  regulate 
such  transfers  of  business  undertakings  and  property  as 
to  prevent  fictitious  proceedings  of  this  kind  for  the 
purpose  of  evading  liabilities. 

''  The  new  law  requires  that  an  agreement  concerning 
the  transfer  of  a  commercial  or-  industrial  undertaking 
must  be  made  before  a  notary,  and  must  be  fully  regis- 
tered in  the  notarial  books.  The  agreement  must  be 
accompanied  by  a  very  detailed  Ust,  giving  all  debts  and 
liabilities  of  the  undertaking,  with  a  most  exact  enumera- 
tion of  the  names  of  the  creditors,  their  domicile,  and  the 
amount  due.  This  Ust  must  be  signed  by  the  seller  and 
the  purchaser  and  attested  by  the  notary,  who,  within 
three  days'  time,  must  pubHsh  a  notice  in  the  Official 
Gazette,  stating  the  names  and  addresses  of  the  seller  and 
the  purchaser,  and  the  address  of  the  undertaking.  The 
same  notice  has  to  be  given  to  certain  authorities,  and  a 


THE  QUESTION  OF  CREDIT  AND  LAW       83 

special  notice  in  writing  must  be  sent  by  the  notary  to 
each  of  the  creditors. 

"  One  of  the  most  important  features  of  the  new  law 
is  that,  as  regards  Uabilities  enumerated  in  the  above- 
mentioned  list,  both  the  seller  and  the  purchaser  assume 
joint  responsibility,  and  the  creditor  may  claim  from 
either.  The  liabihty  of  the  purchaser  for  the  debts  of  the 
undertaking  remains  in  force  for  five  years  from  the  date 
when  the  debt  became  payable,  or  the  date  of  the  transfer, 
as  the  case  may  be.  The  transfer  of  an  undertaking  of  one 
hmited  liability  company  to  another  is,  by  an  important 
exception,  not  affected  by  the  new  law. 

''  The  law  also  contains  rules  concerning  the  declaration 
of  nullity  of  all  fraudulent  agreements.  Any  creditor  who 
has  obtained  an  order  of  the  Court  on  his  claim  against  a 
debtor,  if  he  cannot  obtain  satisfaction  from  the  debtor's 
assets,  or  if  it  is  manifest  that  his  assets  do  not  cover  the 
amount  of  the  claim,  is  entitled  to  ask  the  Court  for  a 
declaration  that  an  agreement  entered  into  by  his  debtor 
with  a  third  party  is  void,  as  being  concluded  with  the 
intention  of  defrauding  his  creditors." 

To  sum  up,  a  safe  and  profitable  business  can  be  done 
in  Russia  after  the  war  on  reasonably  short  terms  of 
credit,  if  British  manufacturers  will  exercise  the  same 
prudence  and  caution  that  they  give  to  business  at  home 
and  in  other  countries. 

The  extent  to  which  of  recent  years  the  fictitious  transfer 
of  commercial  enterprises  and  private  property  has  been 
practised  in  Russia,  often  with  the  object  of  evading  pay- 
ment of  lawful  debts,  has  at  length  necessitated  the  passage 
of  a  special  law,  the  main  provisions  of  which  are  as 
follows  : 

The  demand  for  consummation  of  the  act  of  transfer 
must  be  estabhshed  by  a  notary  public,  and  the  contract 
of  transfer  must  be  placed  on  record  in  its  entirety. 


84  COMMERCIAL  RUSSIA 

On  conclusion  of  a  transaction  of  this  kind  the  aliena- 
tor must  furnish  the  notary,  under  his  own  and  the 
receiver's  signature,  with  a  list  of  aU  the  creditors  of 
the  concern,  while  the  notary  on  his  part  must,  not  later 
than  three  days  after  the  completion  or  presentation  of 
the  contract,  notify  these  creditors  of  the  conclusion 
of  the  aUenation  contract  with  indication  of  amoimt  of 
indebtedness  to  said  creditors  and  a  brief  resume  of  the 
act  of  transfer  (name  and  residence  of  ahenator  and 
receiver,  style  and  address  of  concern,  contract  price  of 
same,  and  terms  of  payment).  This  Hst  with  the  original 
is  kept  by  the  notary  who  has  effected  or  witnessed  the 
contract,  and  only  a  copy  of  the  contract  is  given  to  the 
contracting  parties. 

Provisions  regarding  debts.  In  this  connection  debts  of 
the  concern  are  deemed  to  be  all  those  entered  in  the  books 
of  the  concern  or  shown  in  its  reports,  and  all  debentures 
formally  signed  by  the  owner  or  issued  in  the  name  of  the 
commercial  house  under  the  signature  of  authorised 
parties.  Irrespective  of  the  foregoing,  debts  also  include 
habilities  incurred  in  the  acquisition,  rental,  equipment, 
operation,  and  upkeep  of  commercial  and  industrial  estab- 
lishments, the  acquisition,  manufacture,  and  conveyance  of 
goods  and  materials,  on  account  of  salaries  to  employees 
and  workmen,  their  remuneration  and  insurance,  on 
accoimt  of  commission  contracts,  arrears  of  rates  and 
taxes,  and  generally  all  obligations  emanating  from  the 
conduct  of  the  enterprise  in  question.  In  case  of  doubt, 
any  debt  of  the  alienator  is  deemed  a  debt  on  account  of 
the  aUenated  concern  till  the  contrary  is  proved  by  the 
interested  person. 

The  fact  of  transfer  nmst  be  advertised  in  local  Govern- 
ment or  provincial  departments,  in  the  Commercial  and 
Industrial  Gazette,  and  also  announced  on  the  local  Stock 
Exchange  and  mercantile  boards,  with  a  view  to  notifying 


THE  QUESTION  OF  CEEDIT  AND  LAW       86 

creditors  who  may  inadvertently  have  been  omitted  from 
the  list.  The  law  further  provides  for  the  estabhshment  of 
joint  hability  of  alienator  and  receiver,  limited  by  five 
years'  prescription,  on  account  of  engagements  entered  in 
the  lists  of  debts  of  the  aUenated  concern,  with  reference 
to  which  it  shall  be  proved  that  the  receiver  knew  of  the 
existence  on  acquisition  of  the  enterprise.  In  the  event 
of  non-observance  of  these  rules  or  when  under  the  guise 
of  a  contract  of  ahenation  of  separate  parts  of  the  con- 
cern or  in  some  other  manner  the  transfer  of  the  entire 
concern  is  concealed,  and,  lastly,  when  the  concern  is  trans- 
ferred to  a  wife  or  husband  or  certain  categories  of  near 
relatives,  joint  liability  for  both  receiver  and  alienator  on 
account  of  all  the  latter's  debts  emanating  from  the  said 
enterprise  is  established,  while  in  such  cases  the  curtailed 
five  years'  prescription  is  no  longer  applicable. 

The  operation  of  these  rules  does  not  extend  to  the 
transfer  (1)  of  commercial  and  industrial  enterprises  of  the 
Government,  the  Ministry  of  the  Imperial  Household  and 
Appanages,  the  Department  of  Institutions  of  the  Empress 
Marie,  the  Department  of  Public  Worship,  and  Zemstvo, 
municipal  and  guild  corporations,  and  the  Cossack  troops  ; 
(2)  commercial  and  industrial  enterprises  of  joint-stock 
companies,  share  associations,  and  generally  all  com- 
panies operating  on  thfe  basis  of  properly  established  and 
ratified  articles  of  association  ;  (3)  commercial  enterprises 
for  the  retail  sale  of  goods  which,  for  the  last  year  before 
alienation,  have  not  maintained  more  than  one  adult  hired 
clerk  besides  the  proprietor  or  member  of  his  family  acting 
for  him ;  (4)  industrial  enterprises  and  trade  (artisan) 
estabhshments  with  not  more  than  four  workmen  engaged 
in  both  hand  and  machine  work  during  the  above-men- 
tioned period  ;  and  (5)  banking  institutions. 

The  law  further  contains  special  regulations  which  pro- 
vide that,  in  the  event  of  failure  of  attempt  to  recover  debts 


86  COMMERCIAL  RUSSIA  ] 

or  when  such  attempt  does  not  lead  to  the  complete  satis- 
faction of  the  creditor's  demands,  or  in  the  event  of  suspen- 
sion of  payment  by  the  debtor,  the  creditor  may  take 
action  to  nulhfy  any  transaction  of  the  debtor  whereby, 
in  order  to  evade  payment  of  debts,  the  debtor's  property 
is  transferred,  burdened,  or  depreciated,  in  so  far  as  such 
transactions  tend  to  injure  the  creditor. 

For  actions  detrimental  to  creditors,  the  law  provides 
criminal  responsibihty  in  the  form  of  imprisonment  for 
all  persons  involved  therein ;  similar  responsibihty  is 
estabUshed  also  for  infringement  of  the  rules  concerning 
transfer  by  contract  on  the  part  of  commercial  and  in- 
dustrial enterprises. 

The  present  legal  position  of  British  traders  in  Russia 
has  been  admirably  summed  up  by  Mr.  A.  KrongleakofE, 
the  well-known  Russian  advocate,  in  an  article  in  the 
Manchester  Guardian.  How  far  existing  laws  will  be 
altered  by  the  new  regime  remains  to  be  seen.  A  move- 
ment was,  however,  on  foot  to  facilitate  the  formation  of 
British  enterprises  in  Russia,  and  particularly  those 
identified  with  the  development  of  its  resources. 

Mr.  Krongleakoff  points  out  that  a  new  commercial 
treaty  between  England  and  Russia  was  concluded  on 
December  31st,  1858  (January  12th,  1859),  which  has 
remained  in  force  until  now.  By  this  treaty  the  two  con- 
tracting Powers  recognised  and  confirmed  the  right  of 
their  respective  subjects  to  enjoy  with  their  families  the 
full  hberty  of  coming,  travelling,  or  abiding  in  every  port 
whatever  of  the  dominions  of  the  other  State  ;  the  right 
to  hire  or  possess  in  the  towns  and  ports  dwelHng-houses, 
shops  and  lands ;  to  acquire,  possess  and  alienate,  bequeath 
and  leave  to  the  next  of  kin  all  kinds  of  property  which 
foreigners  are  allowed  to  possess  ;  to  carry  on  commercial 
business,  directly  or  through  agents,  and  to  pay  only  such 
rates  and  taxes  as  are  levied  on  the  native  subjects  of  the 


THE  QUESTION  OF  CKEDIT  AND  LAW      87 

corresponding  country.  The  full  protection  of  the  laws 
of  the  country  was  guaranteed  to  them,  and  they  were 
given  access  to  all  administrative  places  and  law  courts 
to  have  their  rights  legally  protected  and  enforced. 

The  legal  position  of  the  English,  as  well  as  of  all  other 
foreigners,  before  the  revolution  of  March,  1917,  can  be 
summarised  as  follows :  They  could  come  freely  to  Russia, 
subject  to  their  being  granted  passports  from  Russian 
embassies  or  consulates  for  that  purpose,  and  reside  in 
all  parts  of  the  country  for  as  long  as  they  desired. 
Foreigners  of  the  Jewish  faith  could  not  come  to  Russia 
except  by  special  permission,  and  when  in  Russia  they 
had  to  reside  within  the  pale  of  Jewish  residence.  Those 
foreign  Jews  who  obtained  a  special  licence  to  trade  in 
Russia,  as  well  as  foreign  bankers  and  heads  of  big  com- 
mercial firms  of  the  Jewish  faith,  were  not  subjected  to 
this  last  restriction.  Foreigners  residing  in  Russia  enjoyed 
the  general  protection  of  the  Russian  laws  and  were  sub- 
ject to  all  general  rules  and  regulations.  With  regard  to 
commerce  and  industry,  foreigners  were  placed  on  an 
equahty  with  natural-born  Russian  subjects,  with  the 
exception  of  certain  branches  •  of  industry  which  were 
reserved  for  Russians  only — such  as  the  gold-mining 
industry  in  the  Primorsky  Province  (extreme  east  of 
Siberia)  and  the  adjacent  islands  and  on  the  island  of 
SaghaUen,  the  navigation  of  the  Caspian  Sea,  and  the 
coasting-trade  navigation  on  all  other  seas.  The  right 
of  acquiring  and  possessing  movable  and  immovable 
property,  of  holding  estates  on  lease,  of  estabhshing 
factories  and  manufactories,  etc.,  belonged  to  the 
foreigners  on  the  same  footing  as  to  the  Russians  them- 
selves, with  some  restrictions  as  to  the  owning  of  land 
outside  towns  and  ports  in  the  frontier  districts  of  Poland 
and  in  the  south-west  of  Russia.  The  acquisition  of  land 
and  other  immovable  property  in  Turkestan  is  allowed 


88  COMMERCIAL  EUSSIA 

only  to  Russian  subjects  and  to  partnerships,  corporations, 
and  companies  which  do  not  contain  any  foreigners  among 
their  members. 

It  is  hardly  necessary  to  mention  that  foreigners  may 
have  their  rights  enforced  by  the  law  courts,  in  the  same 
manner  as  Russian  subjects.  It  is  provided,  however, 
by  law  that  the  defendant  who  has  been  summoned  by  a 
foreign  plaintifi  can  ask  for  security  for  costs  in  case  the 
latter  should  lose  his  claim,  but  such  security  cannot  be 
demanded  against  a  foreigner  who  is  in  the  service  of  the 
Russian  Government  or  is  possessed  of  an  immovable 
estate.  Foreign  Hmited  companies,  whether  they  have 
their  offices  in  Russia  or  not,  which  restrict  their  business 
in  Russia  only  to  individual  transactions  with  Russian 
subjects  are  also  allowed  to  appear  before  the  Russian 
courts  as  plaintifis,  if  a  convention  to  that  effect  has  been 
concluded  between  Russia  and  the  corresponding  foreign 
country.  A  convention  of  this  kind  concerning  British 
companies  was  made  between  the  two  countries  on 
December  16-29,  1904.  The  fact  that  the  legal  existence 
of  British  companies  is  recognised  by  the  Russian  authori- 
ties and  the  law  courts  does  not  imply  the  right  of  such 
companies  to  carry  on  their  business  in  Russia.  The 
admission  of  foreign  companies  to  trade  in  Russia  is  sub- 
ject to  certain  conditions  and  regulations.  Before  1888 
all  foreign  companies  had  to  obtain  a  special  grant  by 
the  Tsar  in  order  to  be  admitted  to  carry  on  their  opera- 
tions in  Russia.  The  law  of  July  8th,  1888,  introduced 
certain  exceptions  to  this  rule  :  Those  foreign  industrial 
companies  whose  activities  in  Russia  were  hmited  to  the 
sale  of  their  own  products  made  abroad,  as  well  as  foreign 
shipping  companies  carrying  on  the  transport  of  goods 
and  passengers  between  foreign  and  Russian  ports,  were 
released  from  obtaining  a  Ucence  from  the  Sovereign, 
provided  their  agents  comphed,  in  their  business  carried 


THE  QUESTION  OF  CEEDIT  AND  LAW       89 

on  in  Russia  on  behalf  of  their  principals,  with  all  general 
laws  and  regulations  enacted  for  all  foreign  merchants' 
agents  and  representatives  and  also  paid  rates  and  taxes 
in  accordance  with  the  nature  and  dimensions  of  their 
activities. 

By  a  further  enactment  issued  in  1900  there  have  been 
determined  "  general  conditions  "  on  which  foreign  com- 
panies may  be  permitted  to  carry  on  their  operations  in 
Russia.  Under  these  "  conditions,"  which  must  be  con- 
firmed by  the  Government  in  every  case,  those  foreign 
companies  which  desire  to  carry  on  their  business  in 
Russia  have  to  appoint  special  responsible  agents  in  Russia, 
whose  actions  legally  bind  the  company,  and  with  whom 
the  Government  as  well  as  private  persons  can  communi- 
cate on  all  affairs  in  which  the  company  is  concerned. 
The  company  must  notify  the  Minister  of  Finance  of  the 
place  where  such  agency  has  been  instituted  and  also 
advertise  in  several  official  papers.  Within  two  months 
after  the  yearly  report  has  been  approved  by  the  general 
meeting  of  the  shareholders  of  the  company  in  England, 
the  responsible  agent  must  lodge  with  the  Ministry  of 
Finance  and  its  local  organs  copies  of  the  full  statement 
of  accounts  and  balance-sheet  and  fulfil  all  other  for- 
mahties  required  by  law  for  the  purpose  of  levying  trade 
and  income  tax  in  Russia.  A  characteristic  feature  of  the 
conditions  \inder  which  foreign  companies  are  admitted 
to  act  in  Russia  is  that  all  their  property,  movable  and 
immovable,  situate  in  Russia,  as  well  as  all  payments 
due  to  them,  are  specially  responsible  for  all  liabilities 
incurred  by  them  in  *  the  course  of  their  operations 
in  Russia,  and  all  disputes  arising  out  of  or  in  relation 
to  such  operations  are  to  be  tried  by  Russian  law 
courts. 

Among  different  rights  which  belong  to  foreigners  in 
Russia,  as  stated  above,  it  is  necessary  to  mention  that  of 


90  COMMERCIAL  RUSSIA 

holding  shares  in  Russian  companies.  Even  the  whole  of 
the  share  capital  may  belong  to  foreigners.  But,  curiously 
enough,  the  fact  that  foreigners  may  become  shareholders 
of  Russian  companies  caused  certain  legal  disabilities  to 
be  imposed  by  the  legislature  upon  the  companies  them- 
selves. Russian  company  law  rests  on  the  basis  of  a 
special  Ucence  granted  by  the  Government  in  each  separate 
case.  No  company  may  obtain  legal  existence  in  Russia 
unless  the  founders  have  its  statutes  confirmed  by  the 
sovereign  power,  which  was  vested  in  the  Tsar  before  the 
revolution  and  is  now  in  the  hands  of  the  Provisional 
Government.  It  was  a  serious  task  to  carry  the  statutes 
through  under  the  old  regime.  All  legal  restrictions  im- 
posed on  foreigners  and  Russian  Jews  used  to  find  expres- 
sion in  the  statutes,  unless  it  was  expressly  provided  that 
Russian  subjects  of  Christian  faith  only  were  admitted 
to  be  shareholders  in  that  particular  company.  Thus, 
the  statutes  of  Russian  companies  usually  contained  a 
clause  prohibiting  the  acquiring  of  immovable  property 
in  the  districts  where  foreigners  and  Jews  were  forbidden 
to  possess  lands. 

The  revolution  swept  away  this  remnant  of  barbarity, 
together  with  all  other  restrictions  based  on  rehgious  or 
national  distinctions.  By  the  decree  of  March  10,  1917, 
the  Provisional  Government  abohshed  all  restrictions 
upon  the  companies  with  regard  to  the  rights  of  foreigners 
and  Jews,  repealed  the  law  of  February  18,  1911,  by  which 
certain  disabilities  had  been  imposed  on  foreigners  as  to 
the  acquiring  by  them  of  oil  industries  in  the  Caucasus, 
and  generally  equalised  the  status  of  the  companies,  with- 
out regard  to  the  nationality  or  religion  of  the  shareholders. 
By  the  same  decree  the  Provisional  (jJovernment  simphfied 
and  shortened  the  procedure  of  getting  the  statutes  con- 
firmed, by  giving  the  Minister  of  Commerce  and  Industry 
full  power  to  confirm  the  statutes  of  the  new  companies 


THE  QUESTION  OF  CREDIT  AND  LAW      91 

and   to   change   the   old   ones   without   requesting   the 
authorisation  of  the  Provisional  Government. 

Whatever  independent  governments  and  new  legisla- 
tion may  arise  out  of  the  present  position  will  not  materi- 
ally affect  the  question  of  the  conditions  of  credit  or  of 
commercial  law  any  more  than  they  will  result  in  any 
diminution  in  the  demand  for  goods. 


IX 
AGENTS 

British  firms  in  Russia — German  agents  for  British  goods — Previous  experience 
of  British  manufactures — Best  way  of  doing  business — Personal  investiga- 
tion where  possible — Own  branches  and  factories — Combinations  and 
syndicates — Established  firms  as  agents — Young  men  as  representatives — 
Agents  in  all  principal  centres — What  is  required  of  agents — Personal 
visits  periodically. 

THE  question  of  Russian  trade  is  by  no  means  the  new 
problem  generally  supposed.  This  is  not  an  historical 
sketch,  and  hence  it  is  unnecessary  to  refer  to  the  begin- 
nings in  the  time  of  Peter  the  Great  and  Catherine.  Suffice 
it  for  our  purpose  to  state  that  before  the  war  we  were 
sending  ten  miUions  annually  to  Russia,  and  while  this  is 
only  one-sixth  of  what  Germany  exported,  it  is  no  incon- 
siderable sum,  and  presupposes  both  organisation  and 
methods.  Several  British  firms  had  their  own  estabhsh- 
ments  and  agencies  in  Russia,  and  others  more  or  less 
regularly  covered  the  principal  cities  in  search  of  orders. 
Particularly  was  this  the  case  with  the  manufacturers  of 
agricultural  implements  and  textile  machinery.  A  great 
deal  of  business  was,  moreover,  done  through  Germany, 
more  especially  Hamburg,  and  the  export  of  British  goods 
into  Russia  was  therefore  considerably  more  than  the 
returns  show.  In  fact,  I  found  in  Russia  British  products, 
the  manufacturers  of  which  had  no  idea  that  their  goods 
were  in  that  country.  In  some  cases  the  goods  were  sold 
on  commission  by  German  agents  residing  in  Germany, 
and  in  others  by  purchasing  outright,  to  be  sold  again  at 

02 


AGENTS  93 

a  profit.  So  far  as  possible,  these  goods  were  imitated  in 
.Germany,  and  often  consignments  were  made  up,  partly 
of  British  goods  and  partly  of  German  substitutes,  the 
Eussian  buyer,  of  course,  supposing  they  were  all  British. 
Gradually  the  German  goods  were  entirely  substituted 
for  the  British,  and  the  manufacturer  lost  his  trade  with- 
out acquiring  any  goodwill,  and  without  knowing,  in  many 
cases,  even  the  names  of  his  customers.  In  other  instances, 
German  agents  in  Kussia  controlled  the  agency  of  a  British 
firm,  did  a  little  business  to  inspire  confidence  and  learn 
prices,  get  samples,  etc.,  and  then,  securing  the  agency 
for  a  term  of  years,  left  the  British  manufacturer  high 
and  dry. 

While  the  larger  manufacturers,  with  their  organisa- 
tions on  the  spot,  with  men  knowing  the  Eussian  language 
and  versed  in  Eussian  methods,  did  very  well,  the  small 
manufacturer  often  found  his  experiments  in  capturing 
the  Eussian  market  turn  out  very  disastrously.  In  most 
cases  it  was,  to  a  large  extent,  his  own  fault.  Bhnded  with 
the  glamour  of  a  new  foreign  market,  he  did  not  take  the 
most  elementary  elements  of  caution,  and  dealt  with  the 
matter  in  such  a  reckless  manner  that  it  would  equally 
have  spelt  disaster  if  he  had  conducted  his  business  at 
home  on  similar  lines.  A  shrewd  Eussian  of  no  financial 
position  and  less  moral  character,  would  come  across  a 
British  advertisement  in  an  English  magazine  or  trade 
journal,  and  would  apply  for  the  agency,  or  for  prices  and 
samples,  with  a  view  to  direct  purchase.  Possibly,  he 
would  write  to  the  Board  of  Trade,  who  would  pass  on  his 
name,  as  usual  ''  without  any  responsibiUty."  Samples 
and  prices  would  be  followed  by  a  small  sample  order, 
either  with  the  necessary  cash,  or  with  local  references, 
the  worth  of  which  the  manufacturer  could  not  possibly 
estimate.  A  larger  order  followed  with  an  intimation 
that  the  writer  was  much  pleased  with  the  samples  and 


94  COMMEECIAL  RUSSIA 

could  do  a  big  business.  In  this  case,  the  goods  were  to 
be  paid  for  on  delivery.  After  a  few  such  transactions, 
by  which  the  manufacturer's  confidence  was  estabhshed, 
and  he  proudly  referred  to  his  ''  growing  Russian  export 
trade,"  an  order  would  come  for  a  very  much  larger  amount 
with  the  suggestion  that  payment  would  be  made  by  bills. 
This  was  often  the  last  heard  of  the  agent,  and  inquiries 
through  the  Consul,  or  personally  made  on  the  spot,  re- 
vealed the  fact  that  the  bird  had  either  flown,  or  that 
owing  to  the  laxity  of  the  Russian  laws,  he  had  made  over 
his  property  to  others,  and  nothing  could  be  done.  If  he 
acted  as  agent  on  commission,  it  was  much  the  same. 
Names  given  by  the  Board  of  Trade  are  almost  invariably 
those  who  have  applied  for  agencies,  and  are  as  valueless 
as  personal  appHcations,  and  should  be  as  thoroughly 
investigated. 

What,  then,  is  the  best  way  of  doing  business  with 
Russia  ?  And  what  are  the  best  methods  to  be  employed 
to  estabUsh  a  connection  that  should  be  both  safe  and 
profitable  ? 

If  the  firm  is  large  enough,  if  the  prospect  of  doing  busi- 
ness is  sufficiently  great,  undoubtedly  the  best  plan  is  to 
send  out  a  personal  representative  to  investigate  the 
situation  in  the  different  parts  of  the  country.  It  is 
essential  that  he  should  have  some  knowledge  of  the 
language,  and  it  is  equally  important  that  he  should  be 
what  the  Russians  call  "  sympathetic."  The  man  of  tact 
will  make  a  success  of  it,  the  hustler  a  failure.  He  should, 
in  the  first  instance,  at  any  rate,  cover  the  country  pretty 
thoroughly.  This  tour  of  investigation  will  demonstrate 
the  best  methods  to  be  employed  by  that  particular  firm. 
It  may  be  thought  desirable  to  establish  its  own  branch 
in  Russia  ;  it  may  even  be  worth  while  setting  up  its  own 
works.  As  Russian  Customs  duties  are  based  on  weight 
and  not  ad  valorem,  the  heavy  cast-iron  base  of  an  engine 


AGENTS  95 

or  machine  will  usually  pay  many  times  more  customs 
duty  than  the  more  intricate  parts.  The  former  can  be 
cheaply  made  in  Russia  itself,  and  the  fittings  sent  out 
and  assembled  there. 

If  the  business  does  not  appear  to  justify  an  establish- 
ment or  a  factory  in  Russia,  recourse  may  be  had  to  one 
of  the  various  forms  of  agencies  referred  to  later,  or  a 
representative  may  be  sent  out  regularly  once  or  twice 
a  year,  visiting  customers,  selling  goods  and  collecting 
accounts.  I  strongly  recommend  the  training  of  some 
bright  young  fellow  for  this  purpose,  who  should  at  once 
begin  the  study  of  the  Russian  language,  and  make  him- 
self as  familiar  as  possible  with  the  geography  of  the 
country  and  its  methods  of  doing  business. 

In  many  cases,  however,  the  business  will  not  justify 
so  great  an  expenditure  as  is  involved  by  this  method, 
nor  will  the  right  man  be  immediately  available.  Three 
or  four  methods  have  been  adopted  to  solve  the  difficulty. 
Combinations  and  associations  of  manufacturers  in  allied 
businesses  have  made  the  preliminary  investigation 
through  a  selected  committee  of  its  own  members,  or 
through  a  representative  acting  on  behalf  of  the  combina- 
tion. This  plan  has  its  advantages  and  its  disadvantages. 
It  brings  to  bear  upon  the  problem  a  technical  know- 
ledge that  is  extremely  useful.  But  unless  it  is  accom- 
panied by  a  knowledge  of  the  language,  the  investigator 
is  largely  at  the  mercy  of  Englishmen  in  Russia,  who 
may  be  biassed  in  their  recommendations  and  sugges- 
tions, and  very  circumscribed  in  their  knowledge.  The 
chief  disadvantage  is,  however,  that  the  few  larger  firms 
in  the  combination  usually  reap  the  benefit  at  the  expense 
of  the  others,  and  since  its  members  usually  compete 
with  each  other  on  at  least  some  lines,  the  result  is  obvious. 
The  same  remarks  apply  to  syndicates  having  joint 
agencies  in  different  parts  of  the  Russian  Empire.     I 


96  COMMERCIAL  RUSSIA 

asked  the  representative  of  one  such  organisation  in  a 
southern  Russian  town  how  he  managed  to  look  after  the 
interests  of  the  fifty  or  sixty  firms  included  in  the  com- 
bine. He  replied,  "  Oh,  it  originally  consisted  of  three 
or  four  big  firms  that  I  formerly  represented,  and  these 
have  got  fifty  other  smaller  firms  to  join  in  the  enterprise. 
I  look  after  the  original  firms  only,  and  when  some  in- 
quiries come  along  for  something  they  do  not  make,  I 
pass  it  along  to  one  of  the  others." 

Another  plan  is  to  get  some  well-established  firm  in 
Russia  to  act  as  agent  for  the  whole  country,  buying  the 
goods  direct  in  their  own  name,  and  paying  for  them 
themselves,  reserving,  of  course,  the  control  of  the  manu- 
facturer's products  for  the  country.  If  the  firm  is  one  of 
financial  standing,  this  has  the  advantage  of  making  the 
question  of  credit  secure  and  avoiding  the  risk  of  bad 
debts.  But  there  are  few  of  such  concerns  as  are  able  to 
do  justice  to  the  whole  of  the  country,  to  the  Caucasus 
and  Siberia,  the  Ukraine  and  the  Volga,  as  well  as  to  other 
parts.  A  contract  for  ''  the  whole  of  Russia  "  ipso  facto 
included  Siberia,  and  there  is  a  growing  prejudice  in 
Siberia  against  buying  through  agents  in  European  Russia. 
With  the  probability  of  the  country  being  divided  into 
separate  autonomous  governments,  the  need  for  different 
agentfe  will  be  more  acute.  Furthermore,  unless  the 
manufacturer  has  a  branded  and  proprietary  article,  he 
is  entirely  at  the  mercy  of  his  agent,  he  does  not  know 
his  customer,  and  on  the  termination  of  the  agency  he 
is  in  the  same  position  as  before.  Such  agencies  should 
be  given  only  for  such  parts  of  the  comitry  as  it  is  demon- 
strated that  the  agent  is  working  effectively,  and  should, 
it  possible,  be  conditioned  on  some  guarantee  of  sales. 
Where  the  firm  has  the  agency  for  the  whole  of  Russia,  a 
direct  representative  of  the  firm  and  paid  by  it  should  be 
in  the  office  of  the  agent,  ready  to  supplement  the  efforts 


AGENTS  97 

of  the  agent's  representatives  by  his  superior  technical 
knowledge,  helping  him  to  secure  orders  from  customers, 
and  gaining  a  valuable  experience  for  his  firm,  which  can 
be  utilised  in  eventualities.  This  is  one  of  the  best  plans 
where  the  volume  of  prospective  business  justifies  it,  pro- 
vided always  that  the  right  agent  has  been  obtained,  and 
that  he  covers  all  the  potential  parts  of  the  country  for 
the  particular  enterprise. 

An  excellent  plan  for  small  manufacturers  is  one  that  I 
found  adopted  by  a  Walsall  saddlery  house.  One  of  their 
promising  young  men  had  been  selected  and  trained  for 
the  purpose  and  sent  out  to  Moscow  with  a  full  hne  of 
samples.  He  started  by  making  inquiries  from  the  British 
Consul  and  other  sources,  and  then  visited  the  buyers  in 
that  town.  Having  made  a  fair  start  there,  he  gradually 
extended  his  field  of  operations  to  other  towns  in  the 
neighbourhood  and  the  Volga  district,  and  was  working 
up  an  excellent  connection  at  a  comparatively  small  cost 
to  his  employers.  Perhaps  I  should  again  emphasize  here 
the  importance  of  character  as  against  "  smartness." 
A  young  man  in  Russia  has  many  temptations,  both 
social  and  commercial,  and  unless  he  adopts  a  prudent 
and  well-regulated  course  of  discipline,  he  is  apt  to  dis- 
appoint both  himself  and  those  who  have  placed  con- 
fidence in  him. 

Another  method  is  to  employ  agents  in  all  the  principal 
centres  where  business  is  likely  to  be  done.  These  may 
either  be  men  who  buy  outright  and  pay  for  the  goods, 
or  those  who  sell  on  commission  to  customers.  Probably 
both  kinds  of  agents  will  be  employed  by  the  same  firm 
in  different  districts.  To  the  former,  the  same  advan- 
tages and  disadvantages  apply  as  have  already  been 
referred  to  in  the  case  of  the  sole  agent.  In  order  to  pre- 
vent "  nursing  "  the  agency  for  the  benefit  of  German 
and  other  competitors,  the  agreement  should  be  for  a 


98  COMMERCIAL  RUSSIA 

short  period  oiily,  and  subject  to  cancellation  if  a  certain 
amount  of  business  has  not  been  done  in  that  time.  In 
the  case  of  the  commission  agent,  the  same  conditions 
should  apply,  coupled  with  the  further  proviso  that  the 
agent  should  be  responsible  for  a  percentage  of  any  bad 
debts  he  incurs. 

Whatever  method  be  employed,  all  depends  upon  the 
choice  of  agent,  and  the  fullest  investigation  should  be 
made  and  the  greatest  care  taken  in  the  appointment. 
Much  more  is  required  than  financial  responsibihty.  In- 
tegrity and  honour  are  far  more  important.  The  agent 
should  also  have  a  connection,  or  at  any  rate  furnish 
some  evidence  of  his  abihty  to  sell  goods.  It  is  difficult 
to  get  this  information  except  on  the  spot.  It  is  the  one 
point  where  official  and  semi-official  organisations  fall 
short,  and  the  Commercial  Intelhgence  Department  of 
the  Board  of  Trade  is  practically  worthless  for  giving 
information  that  is  of  any  real  value  to  the  British  manu- 
facturer on  this  crucial  point,  the  very  foundation  of  a 
successful  trade  with  Russia. 

Not  long  after  I  had  arrived  in  Petrograd  a  Russian 
came  to  see  me  with  an  introduction.  His  card  indicated 
that  he  was  the  governing  director  of  some  company 
with  a  long  and  high-sounding  name,  with  offices  in 
different  parts  of  the  world.  He  claimed  that  they  had 
connections  and  sub-agencies  all  over  Russia,  and  were 
prepared  to  take  up  agencies  for  EngHsh  manufacturers 
throughout  the  Russian  Empire.  I  inquired  which  of  the 
various  and  diversified  manufactures  represented  they 
were  most  Hkely  to  be  interested  in.  "All  the  lot  "  was 
his  reply.  "  Groceries,  engines,  machinery,  medicines, 
chemicals,  textiles,  we  can  handle  them  all.  You  need 
not  go  any  further  in  Russia.  You  are  a  lucky  man.  You 
can  return  by  the  next  train  and  tell  all  your  people  that 
you  have  found  just  the  man  for  their  business."    It  all 


AGENTS  99 

seemed  too  good  to  be  true  ;  but  in  any  case,  I  wanted 
to  see  more  of  Eussia  than  Petrograd,  so  I  told  him  1 
would  consider  the  matter.  A  day  or  two  afterwards  I 
went  to  look  up  the  offices  and  warehouse  of  the  com- 
pany, and  found  that  the  address  given  was  a  fourth- 
storey  flat  on  the  outskirts  of  the  town  where  my  visitor 
lived.  Inquiries  of  the  banks  and  from  other  sources 
revealed  the  fact  that  he  was  entirely  irresponsible,  and 
that  there  was  no  company  or  offices.  I  found  after- 
wards that  he  had  been  to  England  on  a  visit,  and  had 
"  told  the  tale  "  so  well  as  to  get  some  hundreds  of  pounds 
in  advance  from  British  manufacturers. 

On  another  occasion  I  was  invited  to  meet  the  directors 
of  a  syndicate  for  trading  with  the  Allies.  A  photograph 
was  shown  me  of  a  splendid  building  that,  it  was  said, 
had  been  acquired  in  Moscow  for  exhibition  purposes, 
at  a  cost  of  nearly  a  million  roubles,  and  a  document 
purporting  to  be  a  special  charter  granted  to  the  com- 
pany. The  syndicate  had  apparently  been  promoted  by 
a  smart  Jew  in  Petrograd,  who  had  secured  a  prince,  a 
general  and  a  banker,  all  of  whom  I  met,  as  his  co- 
directors.  There  were  millions  at  the  back  of  the  scheme, 
facilities  and  opportunities  such  as  no  other  organisation 
in  Russia  possessed,  and  a  picture  presented  to  me  almost 
worthy  of  the  Arabian  Nights.  But  investigation  again 
disclosed  the  fact  that  it  was  all  what  our  American 
cousins  would  call  "  hot  air,"  and  pertinent  questions  as 
to  confirmatory  evidence  were  met  with  an  aggrieved 
air  that  I  should  for  one  minute  doubt  the  bona  fides  of 
such  an  institution.  I  am  almost  inclined  to  believe  that 
in  Russia  the  more  high-sounding  the  title  the  more 
caution  should  be  exercised  before  making  commitments. 

The  war  has  found  many  of  the  principal  Russian 
agents  who  dealt  entirely  in  German  and  Austrian  goods 
with  their  occupation  gone.     These   are  generally   the 


100  COMMERCIAL  RUSSIA 

firms  who  are  now  clamouring  for  British  agencies.  In 
many  cases  they  will  be  very  desirable  acquisitions,  being 
thoroughly  familiar  with  the  requirements  of  their  dis- 
tricts and  having  an  estabUshed  connection.  In  others, 
the  intention,  doubtless,  is  to  nurse  the  agency  until 
such  time  as  they  can  renew  their  former  connection 
with  the  enemy  empires,  when  the  experience  they  have 
gained  in  the  meantime  will  be  of  additional  value  to  our 
German  competitors.  Extreme  caution  should  be  exer- 
cised in  such  cases,  and  conditions  imposed  that  will  pre- 
vent the  agency  being  held  simply  with  a  view  of  keeping 
•British  goods  out  of  the  market  by  not  attempting  to 
sell  them  at  aU,  or  on  a  small  scale  to  keep  the  agency 
open,  or  of  supplying  the  immediate  wants  of  their  cus- 
tomers mitil  such  time  as  the  Germans  can  do  so. 

In  conclusion,  let  me  recommend  that  every  British 
firm  doing  a  sufficient  volume  of  business  in  Russia  should 
once  in  a  while  visit  the  agents  and  customers  by  a  principal 
or  responsible  member.  In  this  case  it  does  not  so  much 
matter  if  he  does  not  speak  Russian,  though  even  a  little 
knowledge  of  the  language  would  come  in  very  usefid.  He 
would  not  only  see  how  far  the  firm  was  being  fully  repre- 
sented by  his  agents,  collect  outstanding  accounts,  and 
correct  misunderstandings ;  but  the  personal  touch  with 
his  customers  would  be  of  a  value  which  is  inconceivable 
to  those  who  do  not  know  how  much  the  personal  equation 
enters  into  Russian  business  life. 


X 
GOVERNMENT   AND   OFFICIAL   BUYERS 

Approaching  the  government  departments — Personal  representation  necessary 
— List  of  departments — The  Zemstvos  :  their  duties  and  privileges — 
Control  by  the  Government — The  Co-operative  movement — Over  forty 
thousand  organizations — The  Moscow  union — The  Urals — Finland — The 
Municipalities. 

AMONG  the  best  opportunities  for  trade  in  Russia  are 
XjL  those  for  contracts  with  the  Government,  the 
Zenfetvos  or  County  Council,  the  Municipahties,  the 
Co-operative  societies  and  the  village  credit  associations. 
These,  however,  all  require  personal  representation  on 
the  spot,  and  letters  and  catalogues  are  of  no  use  what- 
ever. 

In  the  case  of  the  Government  a  stamp  duty,  charge- 
able at  the  rate  and  in  the  form  of  two  75  kopeck  Eussiaji 
revenue  stamps,  is  necessary  for  every  written  communica- 
tion sent  to  Government  offices  by  unofficial  individuals 
or  bodies  and  requiring  a  reply.  These  stamps  can  only 
be  procured  in  Russia  and  are  not  kept  by  the  Russian 
Consuls  in  foreign  countries.  No  serious  attention  would 
be  given  to  any  letters  addressed  by  British  firms  to 
Russian  Government  departments  without  these  stamps, 
and  even  then  the  communications  would  have  to  be  in 
Russian.  The  exigencies  of  war  and  the  needs  of  the 
Russian  Government  have  somewhat  modified  these 
regulations  temporarily,  but  in  normal  times  they  are 
strictly  enforced.^  In  the  case  of  the  Patent  Ofl&ce,  com- 
munication   direct    with    applicants    outside    Russia    is 

101 


102  •  COMMSJieTAL  RUSSIA 

entirely 'forbidden; 'anfl"ft*ca*nnot  be  approached  except 
through  accredited  agents  in  Petrograd. 

Even  if  the  stamps  were  affixed  to  the  correspondence, 
quotation,  or  offer,  the  chances  would  be  against  any- 
serious  consideration  or  reply,  unless  the  application  were 
followed  up  by  other  steps,  in  Russia,  to  introduce  and 
recommend  the  firm  and  to  withstand  the  opposition  ot 
competitors.  It  is,  in  fact,  necessary  that  firms  desirous 
of  doing  business  with  Russian  Government  departments 
should  have  a  competent  representative  on  the  spot. 
The  exercise  of  personal  influence  is  frequently  required 
in  acquiring  necessary  information,  in  presenting  tenders, 
and  in  ensuring  their  proper  examination.  And  this 
generally  entails  much  explanation,  translation  of  techni- 
cal conditions,  etc.,  which  can  be  more  readily  attended 
to  in  Russia  than  in  this  country. 

Under  the  old  regime  it  was,  without  doubt,  in  many 
cases,  necessary  to  la^ashly  distribute  largesse  in  order 
to  secure  contracts,  but  this  was  by  no  means  so  in  every 
case.  I  speak  from  experience  of  the  Department  of  Ways 
and  Communications,  from  whom  I  received  orders 
during  the  war,  without  the  shghtest  suggestion  of  bribery. 
Under  the  new  administration,  conditions  in  this  respect 
should  be  materially  improved,  but  the  outstanding  fact 
is  that  Government  orders  require  a  representative  on 
the  spot.  Moreover,  Russian  methods  are  exceedingly 
slow,  and  one  of  the  jokes  told  at  the  British  Embassy  is 
of  a  British  manufacturer  coming  to  Petrograd  to  com- 
plete a  contract,  the  details  of  which  had  all  been  arranged, 
and  who  said  that  he  was  only  staying  a  few  days,  and 
had  made  his  arrangements  accordingly.  The  officials, 
knowing  the  Russian  dilatoriness  in  such  matters,  advised 
him  to  secure  accommodation  for  two  or  three  months, 
and  it  was  fuUy  that  time  before  he  was  able  to  retiu'n 
with  the  contract  in  his  pocket. 


GOVEENMENT  AND  OFFICIAL  BUYERS    103 

The  following  list  of  departments  with  their  addresses 
in  Petrograd  (for  they  are  spread  all  over  the  city)  may 
be  of  use  : 

The  Chief  of  the  Artillery, 

Liteiny  Prospect  3,  Petrograd. 

His  High  Excellency,  the  Minister  of  Agriculture, 
Sergievskaia  36,  Petrograd. 

The  Admiralty  Shipbuilding  Works, 

Fontanka  203,  Petrograd. 

The  Ministry  of  Ways  and  Communications, 
Dept.  of  Constructions  of  Railways, 

Fontanka  117,  Petrograd. 

Electrical  Department    of    the    Ministry    of    Trade 
and  Industry, 

Zabalkansky  19,  Petrograd. 

The  Ministry  of  Trade  and  Industry, 

Petrograd. 

His  High  Excellency  the  Marine  Minister, 

Admiralteistvo,  Petrograd. 

Mining  Dept.  of  the  Ministry  of  Trade  and  Industry, 
Universitetskaia  Naberejnaia  1,  Petrograd. 

The  Ministry  of  Finance,  Railways  Department, 

Konnogvardersky  Boulevard  19,  Petrograd. 

The  Zemstvos  represent  the  late  Russian  Government's 
concession  to  popular  demand  for  local  self-government. 
To  the  Zemstvos  is  entrusted  the  care  of  local  needs  and 
interests  of  the  given  government  or  district,  as  :  public 
health,  education,  charity,  improvement  and  maintenance 
of  local  ways  of  communication,  organisation  of  the  local 
Zemstvo  post  service,  measures  against  fire  accidents, 
communal  Zemstvo  insurance  of  property,  assistance  and 


104  COMMERCIAL  RUSSIA 

development  of  local  agriculture,  commerce  and  industry. 
Besides  this,  the  Zemstvo  has  to  do  certain  work  in  the 
interests  of  the  central  administration ;  for  instance, 
the  distribution  and  regulation  of  Government  taxes 
among  communities,  housing  of  the  district  poKce,  re- 
cruiting expenses,  etc. 

Zemstvo  affairs  concerning  a  whole  government  are 
looked  after  by  the  government  Zemstvo  ;  concerning  only 
a  district,  by  the  district  Zemstvo.  But  certain  affairs, 
whether  concerning  the  whole  government  or  only  a  dis- 
trict, are  looked  after  by  the  government  Zemstvos,  as, 
for  instance,  the  issuing  of  obUgatory  dispositions,  the 
conclusion  of  loans,  fairs,  bazaars  and  wharfs,  etc.  The 
Zemstvos  of  both  categories  have  the  right  to  send  their 
petitions  concerning  local  interests  and  needs  directly 
to  the  Governor,  who  writes  his  conclusions  upon  it  and 
then  forwards  it  to  the  respective  minister.  In  case 
the  latter  finds  difficulties  in  complying  with  the  request 
of  the  Zemstvo,  he  enters  the  question  to  the  Council  of 
Ministers. 

The  government  Zemstvo  is  entitled  to  issue  local 
lobigatory  dispositions  regarding  sanitary  measures,  anti- 
fire  regulations,  the  construction  and  maintenance  of 
pubhc  roads,  etc.,  at  their  own  initiative  or  at  the  initia- 
tive of  the  Governor  or  the  district  Zemstvo.  But  these 
flispositions  must  be  confirmed  by  the  Governor,  as  repre- 
sentative of  the  central  administration,  and  he  pub- 
lishes them  in  the  same  way  as  his  own  dispositions. 

Besides  this,  the  Zemstvo  is  entitled  to  issue  "  adminis- 
trative "  dispositions,  regarding  the  introduction  of  taxes 
to  cover  their  expenses,  the  changing  of  the  direction  of 
pubHc  roads,  etc.,  which  must  also  be  confirmed  by  the 
Governor,  and  in  some  cases,  by  the  minister.  The  Gover- 
nor and  minister  have  the  right  of  "  veto,"  i.e.  to  cancel 
every  disposition  of  the  Zemstvo  if  they  find  it  not  in 


GOVEENMENT  AND  OFFICIAL  BUYERS      105 

accordance  with  (1)  the  law,  (2)  the  interests  of  the  Em- 
pire, (3)  the  local  interests.  This  veto  can  be  protested 
against  by  the  Zemstvo,  and  the  contest  is  finally  settled 
in  some  cases  by  the  minister,  in  others  by  the  Senate. 
The  Zemstvos  feel  very  severely  and  keenly  this  right 
of  ''  veto,"  especially  when  a  measure  they  know  to  be 
necessary  or  useful,  of  which  they  are  the  only  com- 
petent judges,  being  on  the  spot  and  knowing  well  the 
needs  and  interests  of  their  community,  is  protested 
against  by  the  central  administration  on  account  of  the 
proposed  measure  "  not  being  in  the  local  interests," 
inasmuch  as  they  have  no  means  of  persuading  the  pro- 
tester of  their  knowing  better  the  local  needs,  which  are 
their  own  needs,  than  the  protester. 

The  Government  acts  also  as  controller  of  the  work 
of  the  Zemstvo  Boards,  and  has  the  right  of  revision  of 
all  that  they  are  doing  and  of  "  veto  "  concerning  their 
activity. 

The  dependence  of  the  Boards  of  the  Zemstvo  upon 
the  Crown  Administration  is,  in  fact,  even  greater  than 
the  dependence  of  the  Zemstvo  Assembhes,  on  account  of 
the  appointment  of  their  staff  depending  on  the  confirma- 
tion of  the  Governor,  who  will  not  allow  any  person  to 
be  appointed  whom  he  does  not  like  for  one  reason  or 
another.  The  usual  pretext,  always  ready  to  hand  and 
allowing  of  no  investigation,  is  the  ''  political  unfaith- 
fulness "  of  the  proposed  candidate,  i.e.  the  opinion  that 
he  may  be  democrat,  revolutionary,  hidden  or  open,  years 
ago,  perhaps,  or  may  have  communicated  with  some 
persons  of  such  reputation. 

Thus,  in  all  its  functions — ^in  the  issuing  of  disposi- 
tions, in  their  execution,  in  the  appointing  of  their  leaders 
and  the  staff  of  their  executive  body — the  Zemstvo  acts 
under  the  control,  or,  more  accurately,  under,  the  tutor- 
ship of  the  crown  administration. 


106  COroiEECIAL  RUSSIA 

The  Zemstvos  receive  their  revenues  by  introducing 
taxes,  and  have  a  right  to  take  taxes  from  the  following 
sources  :  taxes  on  land  and  real  estate,  houses,  commerce 
and  industry,  plants  and  works,  a  certain  percentage  from 
the  income  of  the  local  law  courts,  etc. 

The  powers  of  the  Zemstvos  were,  however,  from  time 
to  time  considerably  curtailed.  During  the  war  they 
contributed  largely  in  helping  the  medical  and  sanitary 
arrangements  and  towards  remedying  the  various  evils  and 
difficulties  arising  from  mismanagement  and  inadequate 
facihties  at  headquarters,  and  on  this  account  came  into 
conflict  with  the  Government  and  materially  assisted  in 
the  Revolution. 

Nearly  every  town  and  government  has  its  Zemstvo. 
Russia  is  divided  into  ''  governments  "  corresponding  to 
our  counties,  though,  of  course,  considerably  larger,  many 
of  them  being  as  large  as  Great  Britain.  The  Zemstvos 
supply  the  farmers  and  landed  proprietors  with  practi- 
cally all  their  requirements,  and  assist  in  the  disposal 
of  their  products.  As  an  illustration,  their  purchases 
of  agricultural  machinery  alone  in  1911  amounted  to  a 
miUion  and  a  quarter  pounds  sterling.  They  have  stores, 
carry  stocks,  pay  for  goods  in  cash  and  retail  them  on 
credit  to  the  farmers.  They  offer  complete  guarantees 
and  absolute  security,  though,  from  the  nature  of  their 
business,  in  some  Unes  considerable  credit  has  been  given 
in  the  past. 

The  Co-operative  movement  in  Russia  has  made  tremen- 
dous strides  since  first  started  in  1 865,  and  under  a  Demo- 
cratic Government  may  be  expected  to  increase  even 
more  rapidly. 

One  of  the  most  startling  advances  which  has  been 
recorded  in  the  last  few  years  is  in  the  matter  of  the 
credit  arrangements  of  these  various  Co-operative  unions. 
It  was  decided  to  estabUsh  a  central  bank  for  the  pur- 


GOVERliTMENT  AND  OFFICIAL  BUYERS     107 

pose  of  uniting  the  whole  system  of  Co-operative  institu- 
tions with  the  general  finance  market,  which  should  be 
able  to  find  free  capital  and  also  distribute  the  excess 
of  capital  which  is  accumulated  in  Co-operative  institu- 
tions. This  proposal  was  put  forward  at  the  first  Congress 
of  Co-operative  Unions  in  Russia,  which  took  place  in 
Moscow  in  1908.  Here  it  was  proposed  to  estabhsh  a 
bank  analogous  to  the  French  and  Italian  people's  bank 
or  to  the  German  institutions  of  this  kind,  upon  which 
foundation  a  central  bank  of  Russian  Co-operation  might 
be  developed. 

It  is  noteworthy  in  this  connection  that  steps  have 
already  been  taken  to  establish  a  central  bank  for  the 
Russian  co-operative  societies  in  the  Moscow  Narodny 
Bank,  and  it  only  remains  for  most  of  the  co-operative 
societies  and  unions  to  join  up  with  this  organisation  for 
Russia  to  achieve  the  final  working  out  of  this  system. 
I  In  the  first  year  and  a  half  of  its  existence  the  bank 
had  1,000,000  roubles  of  stock  capital,  distributed  in 
4000  shares  of  250  roubles  each.  To-day  the  capital  is 
2,000,000  fully  paid  shares  and  a  further  increase  of 
capital  of  2,000,000  roubles  has  been  sanctioned.  The 
turnover  at  the  bank  was  : 

Roubles 

In  1912 22,735,535 

Inl913 56,066,168 

In  1914 110,221,080 

In  1915 243,234,649 

In  1916  up  to  May  1st      ....      200,012,371 

2725  co-operative  societies-  and  other  organisations  par- 
ticipated in  taking  up  this  capital,  accounting  for  7227 
shares,  while  there  were  171  private  persons  with  673 
shares.  It  should  be  mentioned  here  that  the  constitu- 
tion of  the  bank  is  such  that  it  is  impossible  for  any  one 
financial  group  to  acquire  a  dominating  influence  in  the 


108  COMMERCIAL  RUSSIA 

control  and  direction  of  its  activities,  since  the  voting 
power  is  independent  of  the  number  of  shares  held. 

It  was  feared  at  the  beginning  that  the  financial  strength 
of  co-operation  might  be  insufiicient,  and  it  was  decided 
to  invite  private  capital  in  addition  to  the  participation 
of  co-operative  institutions.  As  a  matter  of  fact,  this  has 
proved  unnecessary,  and  from  the  third  issue  of  shares  it 
was  proposed  that  these  should  be  circulated  only  among 
co-operative  institutions.  The  number  of  shareholders 
and  cHents  has  grown,  and  the  turnover  has  been  aug- 
mented in  an  extraordinary  manner,  increasing  the  con-j 
fidence  placed  in  the  bank.  This  confidence  has  beei 
further  strengthened  by  the  opening  of  credit  by  th( 
Imperial  Bank,  and  by  the  union  of  the  Department  oi 
Agriculture,  the  AIl-Russian  Union  of  Towns,  and  the| 
bank  for  the  purchase  of  goods  from  abroad. 

Although   European   Russia   has   a   great   number   o| 
co-operative  organisations,  Siberia  possesses  the  strongest 
imions  in  regard  to  finance  and  number  of  members.    Afe 
the  present  time  forming  almost  a  quarter  of  Asia,  with! 
an  area  one-and-a-half  times  that  of  the  whole  of  Europe,! 
and  two-and-a-half  times  the  size  of  European  Russia/ 
Siberia  is  represented  chiefly  by  the  peasant  class.    Durmg 
the  two  years  of  the  war  many  new  co-operative  societies 
have  been  organised,  and  particularly  consumers'  societies, 
in  many  cases  the  number  having  doubled.      Accordiu] 
to  the   figures  of  the    Novo-Nikolaievsk  branch  of  th< 
State  Bank  for  1915,  the  total  number   of   credit   am 
saving  societies  in  this  district  was  increased  by  6*14  per 
cent.,  and  the  membership  by  6*8  per  cent.,  with  an 
average  membership  in  each  society  of  738.     It  is  an 
interesting  fact  that  the  increase  of  members  was  greatest 
during  the  spring  of  1916,  when  the  need  of  money  was 
very  acute,  and  at  that  time  the  sum  of  money  credited 
to  members  was  increased  to  1,000,000  roubles  compared 


GOVERNMENT  AND  OFFICIAL  BUYERS    109 

with  the  winter  grants.  Deposits  increased  from  1,000,000 
bo  over  3,000,000  roubles,  which  has  considerably  in- 
creased the  activity  and  power  of  the  societies.  Another 
lield  of  the  co-operative  societies  lies  in  the  provision 
of  grain  warehouses  and  elevators.  According  to  the 
ligures  26  societies  have  their  own  warehouses — 41  in 
number,  and  one  elevator  with  a  total  capacity  of  850,000 
jDOods.  Societies  engaged  in  the  selling  of  agricultural 
machinery  have  bought  over  3,000,000  roubles  worth,  and 
they  are  therefore  a  branch  of  the  commercial  societies 
which  needs  very  carefully  to  be  considered. 

In  regard  to  the  number  of  co-operative  societies 
Russia  comes  next  to  Germany.  At  the  present  time 
Russia  has  40,000  co-operative  organisations — the  number 
having  increased  considerably  during  the  past  few  years. 
For  instance,  in  1913  alone  4000  co-operative  societies 
were  formed.  Of  the  total  number  3930  are  credit  societies, 
3400  small  savings  banks,  10,900  co-operative  stores, 
1227  agricultural  societies,  2000  butter-producing  societies, 
and  about  500  various  producers'  societies.  The  only 
societies  of  which  the  financial  economic  position  can  be 
made  out  exactly  are  the  credit  co-operative  societies. 
The  turnover  on  June  1st,  1915,  equalled  80,000,000 
roubles,  50,000,000  of  which  was  subscribed  by  members, 
the  balance  being  composed  of  various  deposits  from 
outside  sources.  This  increase  shows  that  co-operative 
credit  in  Russia  already  exerts  an  enormous  influence 
on  Russian  economic  fife,  and  successfully  replaces  the 
usual  banking  credit.  The  development  of  other  branches 
of  the  co-operative  movement  towards  central  organisa- 
tion has  imited  several  smaller  and  individual  societies. 

The  Union  of  Siberian  Butter-producing  Artels  is 
already  well  known  in  England.  This  union  has  800,000 
members  and  a  capital  of  15,000,000  roubles,  and  controls 
the  production  of  butter  and  dairy  products  in  Siberia, 


no  COMMERCIAL  RUSSIA 

and  also  its  export  to  European  countries.  This  union 
had  branches  in  London,  Berlin  and  Hamburg,  and 
possesses  its  own  warehouses,  docks  and  refrigerators. 

With  regard  to  the  latest  tendencies  of  the  co-operative 
movement  the  indi\ddual  co-operative  societies,  stimu- 
lated by  their  increasing  activity,  have  begun  to  organise 
themselves  into  local  unions,  of  which  the  Moscow  Union 
of  Co-operative  Stores  is  one  of  the  largest.  It  connects 
1500  co-operative  societies,  and  has  a  turnover  of 
10,000,000  roubles.  Correlated  with  this  developmentj 
of  local  unions  is  the  extension  of  their  sphere  of  activity, 
and  they  now  embrace  such  diverse  subjects  as  the  pro- 
duction of  potato  flour  in  their  own  mills,  the  drying  ol 
vegetables  and  corn,  the  creation  of  centres  for  hiring  out 
agricultural  machinery  to  peasants,  and  the  co-operative 
insurance  of  cattle  and  property,  etc.  A  great  change  in 
the  economic  Hfe  in  Russia,  connected  with  the  war,  has 
given  a  new  stimulus  to  the  movement,  because  the  small 
producer  has  found  out  that  only  by  co-operation  can  he 
free  himself  from  the  exploitation  of  middlemen  and 
speculators,  and  at  the  same  time  he  has  realised  only 
through  co-operation  can  he  keep  the  prices  of  various 
products  at  a  low  level,  and  thus  organise  a  sound  basis 
for  luture  prosperity. 

In  the  Urals  the  local  conditions  have  caused  the  move- 
ment to  develop  in  two  directions — firstly,  in  the  estab- 
hshing  of  credit  organisations  ;  secondly,  in  the  organisa- 
tion of  agricultural  societies.  Here  co-operative  stores 
and  consumers'  societies  are  not  very  numerous,  and  they 
do  not  play  a  very  important  role  in  the  economic  Hfe, 
and  are  important  only  in  so  tar  as  they  regulate  prices  oi 
products.  In  the  organisation  of  credit  and  union  societies 
great  assistance  has  been  given  by  the  local  government 
bodies  and  the  Zemstvos.  These  bodies — established  with 
the  object  of  building  up  the  prosperity  of  the  popula- 


GOVERNMENT  AND  OFFICIAL  BUYERS     111 

tion — have  discovered  that  both  forms  of  the  movement 
contribute  to  the  economic  stabihty  of  the  small  peasant 
households,  in  consequence  of  which  they  assist  in  the 
organisation  of  financial  and  other  help. 

In  the  Urals  there  were  already  in  existence  small 
Zemstvo  banks  which  gave  credit  to  peasants ;  the 
Zemstvos  kept  also  specialists  and  experts  to  give  advice 
on  the  machinery  and  assistance  to  farmers  ;  warehouses 
to  be  rented  out,  and  agricultural  machinery  which  could 
be  purchased  by  peasants  on  easy  terms  of  payment.  It 
was,  however,  by  means  of  the  co-operative  organisation 
that  the  Zems-tvos  could  most  satisfactorily  perform  their 
work.  The  Zemstvos  were  often  situated  some  distance 
from  the  small  villages,  and  they  required  small  centres 
intimately  acquainted  with  the  local  bodies,  with  the 
same  interests,  and  united  by  the  same  purpose.  The 
co-operative  societies  were  able  to  supply  this  need.  In 
the  Urals  the  active  part  of  this  work  was  taken  by  the 
Union  of  Small  Credit  Societies,  which  was  organised  in 
1907. 

At  first  this  union  only  possessed  16  societies  among 
its  members  and  occupied  an  intermediate  position 
between  the  Zemstvos,  private  firms  and  co-operative 
societies  in  the  capacity  of  middlemen  and  agents.  With 
its  growth,  however,  this  union  began  to  give  credit  to 
various  subsidiary  societies,  and  in  addition  to  the  opera- 
tions in  this  sphere,  it  also  commenced  to  carry  on  an 
extensive  educational  campaign  with  a  view  to  intro- 
ducing improvements  among  the  societies  themselves,  and 
to  enlighten  the  peasants  generally. 

At  the  end  of  1915  this  progressive  union  had  already 
acquired  its  own  building,  with  a  large  printing  estab- 
hshment,  published  a  journal,  devoted  entirely  to  the 
problems  of  the  co-operative  movement,  and  other  propa- 
ganda work  in  the  Urals.    At  the  beginning  of  the  year 


112  COMMERCIAL  EUSSIA 

1916  it  numbered  among  its  members  91,800  peasants, 
while  it  extended  credit  to  them  to  the  amount  of 
98,200,000  roubles. 

Another  indication  of  the  progressiveness  of  this  union 
and  of  the  energy  which  inspires  its  activities  is  shown 
by  the  action  it  has  taken  in  storing  the  peasants' 
machinery  during  the  winter.  The  disincHnation  of  the 
peasants  to  place  their  machinery  in  storehouses  out  of 
the  season  was  found  to  be  due  to  their  fear  of  destruc- 
tion by  fire.  This  union,  however,  took  steps  to  estabhsh 
a  means  of  co-operative  insurance.  In  addition  to  this, 
they  supphed  special  engineers  to  instruct  the  peasants 
in  the  dissembhng  of  their  machinery,  so  that  in  this 
way  the  life  of  the  machine  is  trebled  or  even  quadrupled, 
and  the  peasants  themselves  acquire  the  technical  know- 
ledge for  handling  machinery.  Many  peasant — kustarny — 
industries  have  also  developed  at  an  abnormal  rate  owing 
to  war  requirements,  and  at  the  same  time  have  changed 
their  character,  and  also  in  this  direction  co-operation 
has  not  been  slow  to  estabhsh  schools  of  instruction  to 
enable  the  peasants  to  make  their  supphes  according  to 
the  sample  supphed  by  the  Government,  by  reorganisa- 
tion of  the  workshops.  The  union  has  a  large  library, 
and  a  cinema  theatre  for  demonstration  purposes  in 
agricultural  and  other  matters  interesting  to  co-operators. 
The  union  bases  its  activities  upon  the  dictum  of  Spencer — 
*'  Co-operation  succeeds  only  in  proportion  to  the  mental 
and  moral  quahties  of  those  who  carry  out  its  ideas."  The 
study  of  the  co-operative  method  in  Western  Europe, 
and  particularly  in  England,  which  is  the  cradle  of  co- 
operation, shows  that  co-operation  is  a  very  great  factor 
in  creating  civihsed  conditions  in  those  countries,  and 
hence  it  is  important  that  Russia's  co-operative  move- 
ment should  be  connected  with  English  capital,  as  this 
is  the  direction  in  which  Russia  has  consistently  suffered. 


GOVEENMENT  AND  OFFICIAL  BUYERS     113 

Through  the  co-operative  societies  EngUsh  merchants 
will  have  an  enormous  market  for  purchasing  raw  materials 
and  for  the  sale  of  manufactured  goods,  and  by  the  same 
means  EngHsh  merchants  will  be  able  to  penetrate  right 
to  the  Russian  buyer,  and  will  enjoy  all  the  advantages 
of  dealing  without  middlemen. 

The  support  of  co-operative  societies  will  be  a  great 
asset  to  English  capitalists,  and  will  afford  a  sound  basis 
for  smooth  working  in  future.  The  financial  situation  is 
the  key  to  the  problem,  and  centralised  financial  control 
is  the  necessary  condition  for  the  success  of  the  movement, 
just  as  decentralisation  of  detail  will  enable  the  move- 
ment to  be  adapted  to  local  conditions  most  successfully. 

In  Finland,  particular  attention  is  paid  to  the  educa- 
tional side  of  the  movement,  and  the  number  of  students 
in  normal  times  reaches  the  large  figure  of  1000  ;  the 
syllabus  is  very  comprehensive  and  includes  the  theory 
of  co-operation,  together  with  a  full  discussion  of  the 
problems  of  co-operative  credit.  In  this  way  it  is  hoped 
to  stimulate  the  peasants  to  a  fuller  development  of  their 
agricultural  resources,  by  introducing  to  them  the  most 
up-to-date  technique  in  the  various  branches  of  their 
activity. 

The  municipahties  are  governed  much  as  our  own,  the 
municipal  body  and  the  town-hall  being  alike  known  as 
the  Duma.  (By  the  way,  Duma  means  ''  thought,"  and 
of  course,  the  body  we  know  by  that  name  is  the  National, 
as  distinct  from  the  town  Duma.)  These  latter  were,  how- 
ever, in  common  with  all  other  organisations,  under  strict 
surveillance  of  the  Government,  the  presidents  or  mayors 
having  to  be  confirmed  by  the  Tsar  in  the  case  of  Moscow 
and  Petrograd,  and  by  the  Minister  of  Home  Afiairs  or 
the  Governor  in  the  case  of  smaller  towns.  This  has  been 
changed  and  a  much  greater  measure  of  self-government 
granted.     Water   supply   and  lighting,  tramways,   tele- 


114  COMMERCIAJ.  RUSSIA 

phones  and  other  municipal  enterprises  come  within  the 
juiisdiction  of  the  town  dumas,  and  with  the  national 
development  of  the  cities  afford  opportunities  for  a  rich 
harvest  of  trade. 

The  development  of  local  self-government  will  add  to 
the  possibilities  of  trade  with  the  various  governments, 
while  the  republican  movement  mil  give  fresh  impetus 
to  the  growth  and  influence  of  the  Zemstvos  and  co-opera- 
tive societies. 


THE   PORTS   AND   SHIPPFNG 

Lack  of  access  to  the  sea — Mercantile  fleet— Shipping  statutes — Archangel — 
Alexandre vsk — Vladivostok — The  Baltic  ports — The  Black  Sea  ports — 
The  Sea  of  Azov — The  Caspian  Sea. 

IN  a  coastline  coinciding  with  practically  the  whole  of 
Northern  Europe,  all  Northern  and  nearly  two- 
thirds  of  Eastern  Asia,  and  which  reaches  to  North  America 
at  the  Behring  Straits,  Russia  has  only  two  ports  worth 
mentioning,  Archangel  and  Vladivostok,  The  value 
of  the  former  is  discounted  by  the  fact  that  for  a  consider- 
able portion  of  the  year  it  is  closed  on  account  of  ice,  and 
further  by  its  distance  from  the  centres  of  population. 
It  is  about  700  miles  from  Moscow  and  750  miles  from 
Petrograd.  Vladivostok,  the  only  open  port  possessed 
by  Russia  on  the  ocean,  is  thousands  of  miles  away  on 
the  further  side  of  Asia,  and  goods  arriving  at  that  port 
have  to  meet  heavy  railway  charges  before  they  can  find 
a  market.  Both  Vladivostok  and  Archangel  have  come 
into  prominence  during  the  war  on  account  of  the  closing 
of  the  Baltic  and  the  Black  Seas,  but  Russia  will  require 
tremendous  development  before  either  port  takes  its 
stand  among  the  huge  trading  ports  of  the  world. 

In  normal  times  the  shipping  interests  of  Russia  are 
largely  confined  to  the  ports  of  the  Black  and  Baltic  Seas, 
the  one  necessitating  a  passage  through  the  Dardanelles, 
and  the  other  through  the  relatively  narrow  channels 
dividing  Sweden,  Germany  and  Denmark.     The  Baltic 

115 


116  COMMERCIAL  RUSSIA 

ports,  moreover,  are  frozen  in  the  winter.  There  are  also 
the  ports  of  the  Caspian  Sea,  but  as  these  have  no  outlet 
to  the  ocean,  they  have  no  significance  to  imports  and 
exports  and  are  only  of  local  importance. 

The  Russian  mercantile  fleet  consists  of  3700  vessels 
with  a  total  of  783,000  net  registered  tons.  Of  these 
1044  are  steam  vessels  with  a  tonnage  of  513,000  and 
2597  saiUng  vessels  of  257,000  tons.  The  Black  Sea 
(including  the  Sea  of  Azov,  v/ith  which  it  is  connected) 
has  416  steam  and  887  sailing  vessels,  with  registered 
tonnages  of  240,817  and  49,681  respectively,  or  nearly 
40  per  cent,  of  the  whole.  The  Baltic  Sea  comes  next 
\vith  265  steamers  and  719  sailing  ships,  the  tonnage  being 
128,298  and  71,532.  The  Caspian  Sea  has  244  steamers 
and  570  saihng  vessels,  a  large  number  of  which  are 
engaged  in  the  oil-carrying  trade. 

Our  losing  prestige  in  the  Russian  market  is  reflected 
in  the  shipping  statistics.  We  have  not  only  lost  our 
position  in  the  rank  of  nations  exporting  to  Russia,  but 
our  shipping  interests  have  likewise  suffered  through  our 
lack  of  enterprise.  In  1888  55  per  cent,  of  the  shipping 
entering  Russian  ports  carried  the  British  flag  ;  before 
the  war  it  was  35  per  cent.  We  have  held  our  own  fairly 
well  in  the  Black  Sea,  but  in  the  White  Sea  and  Arctic 
ports,  where  less  than  twenty  years  ago  British  shipping 
was  four  times  greater  than  in  Germany,  it  is  now  even 
less.  Our  tonnage  to  the  Baltic  ports  w^as  twice  as  much 
as  that  of  Germany ;  it  is  now  20  per  cent.  less.  Only 
about  10  per  cent,  of  the  total  foreign  trade  is  carried  in 
Russian  ships. 

The  White  Sea  has  80  steamers  with  13,644  tonnage 
and  415  saihng  ships  ^^dth  23,043  tonnage,  mostly  small 
craft.  The  Pacific  Ocean  has  only  45  ships  in  all,  of  which 
39  are  steamers  and  the  other  six  small  saihng  craft. 
Three  hundred  and  eighty-eight  of  the  largest  ships  were 


THE  POETS  AISTD  SHIPPING  117 

built  in  the  United  Kingdom,  114  in  Germany  and  135  in 
-  Sweden.  The  machinery  in  Russian  steamboats  is  largely 
of  foreign  manufacture. 

Immediately  before  the  war  strong  efforts  were  being 
made  for  the  encouragement  of  the  Russian  Mercantile 
Marine,  the  law  for  the  duty-free  importation  of  ocean 
steamers  being  extended  to  1928,  and  bounties  to  the 
amount  of  nearly  half  a  milUon  sterhng  being  advocated 
in  the  estimates  of  1914. 

Archangel  was  discovered  by  the  English  navigator, 
Sir  Richard  Chancellor,  who  was  summoned  to  Moscow 
by  Ivan  the  Terrible,  and  given  important  trading  privi- 
leges for  his  countrymen.  It  flourished  until  Peter  the 
Great  built  Petrograd,  and  suppressed  the  trade  of  Arch- 
angel in  its  favour.  Its  normal  population  is  now  about 
40,000,  and  its  principal  business  has  been  the  export  of 
timber,  tar,  pitch,  fish  and  flax,  as  well  as  grain  from 
Siberia.  It  is  ice-bound  from  the  beginning  of  October 
until  the  end  of  April. 

There  are  numerous  and  large  sawmills  on  the  Northern 
Dvina  nearly  the  whole  of  the  twenty-eight  miles  between 
Archangel  and  the  White  Sea,  and  much  of  the  imports 
are  those  required  by  the  timber  industries.  Ships'  tackle 
and  supphes  are  chiefly  bought  when  the  vessels  are  in 
Norway  or  England,  and  the  heavy  Customs  duties  thus 
avoided.  Other  ports  on  the  White  Sea  are  Kem,  where 
a  British  Vice-Consulate  has  just  been  estabHshed,  and 
Mezen  to  the  north-east,  from  which  inquiries  are  being 
made  for  agriculturist  machinery. 

The  greatest  development  in  Northern  Russia  is,  of 
course,  the  new  port  of  Alexandrovsk,  in  the  ice-free 
Ekaterina  Harbour.  Though  much  further  north  than 
Archangel,  it* has  the  advantage  of  the  gulf  stream. 
The  railway  from  this  port  to  Petrograd  has  now 
been  opened    and,  if  expectations   are  realised,  it  will 


118  COMMERCIAL  RUSSIA 

become  one  of  the  most  important  ports  in  the  Russian 
Empire. 

Vladivostok  (Mistress  of  the  East)  is  a  town  of  120,000 
inhabitants,  including  many  Chinese,  Japanese  and 
Koreans.  In  normal  times  it  has  much  more  significance 
as  a  naval  and  mihtary  station  than  as  a  commercial  port. 
Imports  from  China  and  Japan  come  by  this  route,  and 
it  is  the  distributing  centre  of  Eastern  Siberia.  To  the 
north  of  Vladivostok  on  the  River  Amur  is  the  new  port 
of  Nikolaievsk,  to  which  the  Russian  Government  has 
recently  allocated  a  sum  of  R.1,000,000  (£100,000)  as  the 
fii'st  instalment  towards  the  cost  of  constructing  a  first- 
class  seaport,  and  during  the  whole  of  last  winter  pile- 
driving  was  being  done  through  the  ice.  Since  the  naviga- 
tion opened  this  spring,  work  is  going  on  day  and  night, 
piles  are  being  driven,  quays  being  made,  warehouses 
being  built,  and  one  excavator  dredge  is  deepening  the 
river-bed  alongside  the  quays  so  as  to  enable  ocean-going 
steamers  to  discharge  direct  on  the  town  quays,  while 
another  larger  one  will  shortly  commence  work  on  the  bar 
of  the  river.  This  is  a  matter  of  great  importance,  as  the 
one  drawback  to  the  port  of  Nikolaievsk  has  been  the 
low  depth  of  water  on  the  bar,  causing  large  steamers  to 
hghten  their  cargoes  outside  at  much  delay  and  very  con- 
siderable expense.  The  deepening  of  this  channel  will 
undoubtedly  tend  to  make  Nikolaievsk  one  of  the  prin- 
cipal ports  of  the  East. 

It  lies  thirty  miles  up  the  Amur  river,  and  is  considered 
by  seafaring  men  to  be  one  of  the  finest  natural  harbours 
in  the  world.  The  writer  has  recently  had  inquiries  from 
this  port  for  small  steamers. 

The  ports  of  the  Baltic  Sea  are  Riga,  Libau,  Revel, 
Cronstadt  and  Petrograd.  At  Petrograd  there  are  two 
harbours,  the  coal  harbour  accommodating  ten  steamers, 
and  the  timber  harbour  seventy-five  to  a  hundred  steamers. 


THE  POETS  AND  SHIPPING  119 

Almost  every  kind  of  merchandise  is  imported  and  all  the 
natural  produce  of  Russia  with  the  exception  of  cereals 
exported.  Petrograd  is,  however,  not  a  port  in  the  same 
sense  as  London  or  Newcastle.  Cronstadt,  on  the  Finland 
Gulf,  about  thirty  miles  from  Petrograd,  is  a  naval  depot 
with  graving  docks  which,  although  controlled  by  the 
Government,  are  open  to  the  use  of  others. 

Riga,  which  is  Russia's  most  important  port,  is  350 
miles  from  the  capital.  It  was  founded  by  German 
merchants  in  1158,  and  soon  rose  to  commercial  import- 
ance. The  town,  which  was  built  by  Bishop  Albert, 
stands  on  both  banks  of  the  Dvina,  five  miles  from  the 
gulf.  It  was  colonised  by  German  settlers,  but  in  1582, 
when  Livonia  was  ceded  to  Poland,  Riga,  its  capital,  also 
became  Polish.  During  the  wars  between  Poland  and 
Sweden  it  was  captured  by  the  latter  in  1621,  and  re- 
mained Swedish  until  in  the  conflict  between  Sweden  and 
Russia  it  fell  into  the  hands  of  the  Russians  in  1710. 
Eleven  years  later  Riga  and  Livonia  were  incorporated 
in  the  Russian  Empire. 

The  city — ^the  fifth  largest  town  in  Russia — has  a  popu- 
lation of  about  600,000,  half  of  whom  before  the  war  were 
Germans,  and  the  rest  Russians  and  Letts.  The  old  town, 
which  is  on  the  right  bank  of  the  river,  still  retains  its 
mediaeval  appearance,  but  the  new  quarter  has  many 
fine  modern  buildings.  The  city  is  the  seat  of  an  Orthodox 
and  a  Roman  Catholic  Bishop.  It  has  a  large  trade  in 
time  of  peace,  chiefly  in  imports  of  salt  fish,  raw  cotton, 
machinery,  oil,  coal,  wine  and  fruits,  and  in  exports  of 
timber,  eggs,  butter,  flax,  hemp,  linseed,  hides,  skins, 
cereals,  and  other  agricultural  produce.  In  1912  the  value 
of  the  exports  was  210,847,000  roubles,  and  that  of  the 
imports  104,214,000  roubles.  In  its  commerce  German 
influence  predominated.  Riga  has  an  important  naval 
dockyard,  where  in  1914  nine  1200  ton  destroyers  were 


120  COMMERCIAL  RUSSIA 

under  construction.  In  winter  the  port  is  ice-bound,  and 
the  fact  that  the  mouth  of  the  Gulf  of  Riga  is  almost 
entirely  closed  in  by  the  island  of  Oesel  leads  to  its  waters 
freezing  sooner  and  opening  for  navigation  later  than  would 
otherwise  be  the  case. 

Revel,  a  town  of  about  150,000  inhabitants,  promises 
to  be  one  of  the  most  important  ports  on  the  Baltic.  Its 
annual  importation  of  cotton  exceeds  100,000,000  lbs., 
and  it  does  a  good  business  in  hides  and  bristles.  A  new 
harbour  is  being  built  at  a  cost  of  over  £100,000,  and 
this  will  afford  quay  space  for  a  larger  number  of  vessels, 
as  well  as  modern  facihties  for  shipping. 

Libau,  a  town  of  100,000  inhabitants,  has  a  natural 
harbour  open  all  the  year  round,  and  from  a  fishing  village 
lias  grown  to  a  port  of  some  pretensions.  It  is,  however, 
on  the  extreme  west  coast  and  is  lacking  in  railway  facih- 
ties. Its  chief  imports  are  coal  and  herrings,  and  its 
exports  timber,  grain  and  eggs. 

The  Black  Sea  is,  however,  the  centre  of  Russia's 
principal  shipping  industry.  Here  are  exported  the  grain 
from  Siberia  and  the  southern  provinces,  the  sugar  from 
the  governments  around  Kiev,  the  kerosene  from  the 
Caucasus.  Agricultural  and  general  machinery,  coal, 
iron,  raw  cotton,  tea,  coffee  and  general  merchandise  are 
largely  imported. 

The  total  of  shipping  of  all  nationalities  that  entered 
in  the  foreign  trade  of  the  port  of  Odessa  in  1913  was 
933  vessels,  with  an  aggregate  tonnage  of  1,940,900  tons. 
Of  that  aggregate  British  vessels  accounted  for  745,400  tons. 

Odessa  is  the  most  progressive  of  all  Russian  cities  in 
some  respects.  It  is  socially  cosmopolitan,  and  though  it 
owes  its  evolution  to  a  Frenchman — the  Due  de  Rieheheu, 
w  ho  was  a  royaUst  exile  during  the  Napoleonic  period — 
it  has  the  aspect  and  the  vigour  of  an  American  city.  Its 
population,  which  includes  numerous  Jews,  with  more 


THE  PORTS  AND  SHIPPING 


121 


than  a  sprinkling  of  Greeks,  Roumanians  and  Tartars,  is 
energetic,  with  a  greater  aptitude  for  business  than  the 
Russians  of  the  north.  The  Enghsh  colony  in  normal 
times  numbers  over  one  thousand,  and  English  firms 
engaged  in  the  grain  and  shipping  trade  have  branches 
there. 

The  chief  industrial  interests  of  Odessa  are  based  on 
the  grain,  sugar,  tobacco  and  other  products  of  the  area  it 
serves  as  entrepot ;  the  iron  industry  of  Russia,  more- 
over, has  its  principal  centre  in  the  district.  Other  local 
activities  include  breweries,  distilleries,  mills,  brick- 
yards, agricultural  machine  shops,  engineering,  tramway 
and  other  carriage-building  factories,  soap,  paint,  varnish 
and  chemical  factories  and  tinned-plate  works. 

The  official  reports  available  do  not  give  the  value  of 
Odessa's  principal  exports,  but  quantities  in  1913  included 
the  following : 


Long  tons 

Long  tons 

Coal      .         .         .         .  196,300 

Jute      . 

.      9,600 

Fresh  fruit  (oranges  and 

Tanning  materials 

6,100 

lemons)       .         .         .    40,500 

Cork      . 

4,800 

Copra  ....    18,200 

Iron  (fashioned)      . 

4,700 

Nuts  of  all  kinds      .         .    15,100 

Tea       . 

4,600 

Kaw  Cotton   .         .         .    12,500 

Resin  and  Colophony 

3,100 

The  international  opening  of  the  Dardanelles  after  the 
war  will  give  a  tremendous  stimulus  to  Odessa's  trade 
as  well  as  to  that  of  its  neighbouring  ports,  and  coming 
rivals  Nikolaiev  and  Kherson.  Important  harbour  and 
dock  construction  are  already  under  way  at  both  these 
ports,  and  as  they  are  both  on  the  line  of  the  proposed 
new  railway  from  the  west  through  the  Crimea  and  so  on 
to  the  Caucasus  their  development  will  to  some  extent  take 
place  at  the  expense  of  Odessa,  which  is  not  on  the  new 
route. 

The  ports  of  the  Sea  of  Azov  vie  in  importance  with 


122  COMMEECIAL  EUSSIA 

those  of  the  Black  Sea.  Rostov-on-Don,  Taganrog  and 
Novorossisk  are  all  important  and  progressive  ports 
linking  up  the  Volga  and  the  Don,  served  by  three  im- 
portant railway  systems,  tapping  the  great  coal  and  iron 
districts  of  South  Russia,  and  the  rich  agricultural  country 
of  the  Don  Cossacks,  the  oilfields  of  the  Northern  Caucasus, 
and  are,  moreover,  the  chief  outlets  for  the  great  agricul- 
tural regions  of  South-Eastern  Russia  and  Siberia.  Ros- 
tov-on-Don is  one  of  the  great  centres  of  distribution  of 
agricultural  machinery.  Its  imports  by  sea  and  rail  for 
1913  amounted  in  value  to  £550,300,  of  which  £392,400 
was  grouped  as  miscellaneous,  including  aluminium, 
paint,  wax,  etc.  Other  import  items  included  the  follow- 
ing :  Tea  (in  bricks),  £33,200  ;  machinery  for  factories, 
£22,100  ;  sewing-machines,  £18,300  ;  wine,  £18,100  ; 
metal  ware,  £15,000 ;  spirits,  £13,400 ;  locust  beans, 
£9,400  ;  coffee,  £6,500  ;   olives,  £6,400. 

Batoum,  on  the  eastern  shore  of  the  Black  Sea,  is 
chiefly  noted  as  the  port  for  the  export  of  petroleum  from 
Baku,  on  the  other  side  of  the  Caucasian  peninsula. 
The  oil  is  conveyed  by  pipes. 

The  ports  of  the  Caspian  Sea  have  chiefly  a  local 
interest.  Astrachan,  at  the  mouth  of  the  Volga,  dis- 
tributes the  produce  of  the  great  district  covered  by  that 
river,  while  Baku,  in  addition  to  being  the  seat  of  the 
Russian  oilfields,  is  the  natural  port  for  exporting  to 
Persia  and  Central  Asia  of  both  Russian  and  foreign 
manufacture. 

In  all  the  Russian  ports  considerable  construction  work 
will  be  undertaken  immediately  after  the  war,  creating  a 
gi-eat  demand  for  cranes  and  other  dock  and  harbour 
apphances,  as  well  as  for  ejigines  and  the  requirements  of 
shipbuilding. 


XII 
THE  BALTIC   PROVINCES   AND  POLAND 

German  influence — Riga — Trade  and  Exports — Imports — 
Poland— Warsaw. 

THE  three  provinces  of  Russia  bordering  on  the 
Baltic,  Livland,  Estland  and  Courland,  together 
with  the  divisions  which  comprise  Russian  Poland,  have 
come  very  much  more  under  German  influence  than  any 
other  part  of  the  country.  There  are  many  reasons  to 
account  for  this.  Riga,  the  Queen  of  the  Baltic,  the 
town  that  stands  as  representative  of  the  three  provinces, 
no  matter  to  whom  she  owed  allegiance,  has  always  been 
her  own  mistress.  That  is  the  secret  of  her  history  for 
over  seven  centuries  ;  that,  and  her  association  with  the 
sea.  "  Russian  "  Riga  had  been,  in  name,  for  only  two 
hundred  years,  and,  in  fact,  for  only  twenty-five.  Before 
Peter  the  Great,  who  last  subdued  her,  she  owed  duty  to 
Gustavus  Adolphus  and  to  his  successors.  But  neither 
he  nor  the  masterful  Charles  XII.',  nor  Peter  himself, 
ever  attempted  to  infringe  the  historic  Charter  under 
which  Riga  claimed  the  right  to  practise  the  Protestant 
religion,  the  German  language,  and  independent  jurisdic- 
tion. The  Great  Catherine  did,  indeed,  instal  a  Viceroy 
for  Riga  and  Livonia.  Riga  bowed  to  the  whim  of  a 
woman  who  had  danced  and  lost  her  shoe  in  the  city ; 
but  after  her  death  the  Viceroy  disappeared.  It  was  one 
of  the  old  Hansa  ports  with  Hamburg  and  Bremen,  and 
could  hardly  have  failed  to  have  inherited  the  spirit  of 

123 


124  COMMERCIAL  RUSSIA 

German  enterprise  or  to  draw  within  its  boundaries 
shippers,  merchants  and  manufacturers  of  Grerman  origin. 
Riga  was  as  German  as  Liibeck  or  Bremen.  Metz  is  not  so 
French,  nor  Trieste  so  Itahan,  as  Riga  was  German.  But 
Riga  was  no  irredentist,  no  captive  weeping  by  the  waters 
of  Babylon.  Riga  was  "  German "  of  the  good  old 
northern,  Hberty-loving  sort ;  seafaring,  patrician,  re- 
pubhcan,  hke  her  elder  sisters  of  the  Hansa,  not  stuck-up 
and  boorish,  Hke  the  Buffkes,  as  the  men  of  the  Russian 
Baltic  call  the  Boches. 

In  1889  the  Tsar  Alexander  III.  made  a  determined 
effort  to  Russianise  the  administration  of  his  dominions. 
Riga,  too,  was  to  be  transformed.  Riga  suffered  and  was 
still  under  the  revolution  of  1905,  when  her  workmen 
caught  the  infection  of  the  fevered  countryside.  But 
revolution  was  never  Riga's  way.  The  old  Hansa  city, 
ruled  in  turn  by  archbishops,  by  Teutonic  grand  masters, 
by  alien  captains  and  kings  innumerable,  elected  as  her 
chief  burgomaster  the  brother  of  a  British  peer. 

If  the  Bremen  traders  who,  towards  the  middle  of  the 
twelfth  century,  drifted  to  the  mouth  of  the  Dvina  and 
settled  there,  had  landed  on  an  island,  another  England 
might  have  arisen  in  the  Eastern  Sea.  It  was,  too,  a 
next-door  neighbour  of  the  EngHsh  in  their  Schleswig 
home.  Bishop  Meinhard  of  Holstein,  who  in  1188  brought 
the  gospel  of  Christianity  to  this  distant  shore.  His 
successor.  Bishop  Albert,  founded  in  1201  the  town  of 
Riga,  at  the  mouth  of  the  Rege,  a  tributary  of  the  Dvina, 
and  his  town-guard  was  called  the  Brotherhood  of  the 
Sword. 

The  brothers  went  into  partnership  with  the  Teutonic 
Order  against  the  Danes,  and  soon  the  order  started  to 
quarrel  with  the  ecclesiastical  and  temporal  head  of  the 
town,  Avho  had  been  raised  to  the  dignity  of  Arch- 
bishop.   During  the  three  centuries  for  which  this  struggle 


THE  BALTIC  PROVINCES  AND  POLAND     125 

lasted  the  burghers  usually  took  the  side  of  the  Church, 
whom  they  found  to  be  an  enlightened  patron  of  trade. 
The  struggle  between  the  Archbishop  and  Grand  Master 
ended  with  the  extinction  of  both  at  the  Reformation,  in 
favour  of  which  Riga  pronounced  as  early  as  1522.  For 
nearly  four  centuries  the  city  remained  one  of  the  chief 
strongholds  of  Lutheranism  in  the  world. 

But  the  Great  Merchants'  Guild  of  St.  Mary  continued 
to  meet  in  the  visible  presence  of  an  image  of  the  Virgin, 
the  symbol  of  the  Roman  faith,  which  was  as  old  as  the 
guild  and  nearly  as  old  as  the  city.  Riga's  debt  to  the 
Church  was  indeed  a  heavy  one.  The  instinct  which 
prompted  the  Prince- Archbishops  of  the  thirteenth  cen- 
tury to  affihate  Riga  to  the  Almighty  Hansa  League  was 
politically,  as  well  as  economically,  sound.  This  act  was 
the  greatest  service  of  all. 

Under  the  Hamburg  code  the  merchant-venturers  of 
Riga  prospered  exceedingly  and  learned  to  ruffle  it  with 
the  best  of  the  Easterlings.  This  tradition  was  never 
lost.  Although  not  as  wealthy  as  the  magnates  of  Ham- 
burg or  of  Bremen,  the  merchants  of  Riga  enjoyed  a 
dignified  ease.  For  the  last  century  and  more  they  passed 
their  leisure  in  a  club  which,  for  sureness  of  taste,  equalled 
anything  of  the  kind  to  be  found  in  London.  The  dining- 
room,  the  bilhard-room,  and  the  library  were  thoroughly 
well  appointed ;  and  in  the  reading-room  were  to  be 
found  the  Times,  the  Economist,  the  Westminster  Gazette, 
the  Temps,  the  Matin,  the  Figaro,  together  with  in- 
numerable Russian,  German  and  other  periodicals.  There 
were  also  a  yacht  club  and  two  automobile  clubs,  the 
members  of  which  made  nothing  of  a  run  to  the  Caucasus 
or  the  Crimea,  to  the  Austrian  Alps,  Switzerland,  or  the 
Riviera. 

It  was  tradition  that  inspired  and  disciplined  all  this. 
Exactly  five  centuries  ago  the  young  bloods  of  the  city 


126  COMMERCIAL  RUSSIA 

founded  a  bachelors'  association,  called  the  "  Black- 
heads "  (Schwarz-haupter),  after  their  chosen  patron 
St.  Mauritius,  the  Pious  Moor.  They  acted  as  a  sort  of 
volunteer  police  by  land  and  sea,  and,  when  occasion 
offered,  they  were  not  above  doing  a  bit  of  buccaneering 
on  their  own  account.  On  shore  they  forgathered  in  a 
building  which  rivalled  the  Great  Guild  for  splendour 
and  still  stands  as  a  memorial  of  their  prowess.  No  Baltic 
town,  and  certainly  not  Petrograd,  can  show  anything  so 
fine  as  the  Black-Heads'  house.  On  its  gabled  and  elabor- 
ately decorated  front  it  bears  the  arms  of  Riga  flanked 
by  those  of  Hamburg,  Liibeck  and  Bremen.  Its  collec- 
tion of  armour  and  presentation  plate  was  priceless,  and 
in  the  great  banqueting  hall  contemporary  portraits  of 
Gustavus  Adolphus,  Charles  XII.,  Peter  the  Great,  and  the 
Great  Catherine  looked  down  upon  the  guests. 

Other  monuments  of  the  period  endure  in  the  shape 
of  a  dozen  churches,  several  of  which,  together  with  the 
cathedral,  were  founded  seven  hundred  years  ago.  These 
emerge  prominently  from  among  the  newer  Orthodox 
foundations,  including  also  a  cathedral,  erected  to  the 
number  of  another  dozen  in  more  recent  years.  The  last 
Cathohc  Archbishop  of  Riga,  WiUiam  of  Brandenburg, 
died  in  1563  ;  but,  although  the  churches  were  converted 
to  Lutheran  uses,  the  edifices  themselves  remained,  rich 
in  memories.  Many  of  these  are  enshrined  in  the  old 
convent  attached  to  the  cathedral.  Among  secular 
buildings  the  castle  is  prominent,  with  a  four-hundred- 
year-old  statue  of  the  last  grand  master  of  the  Riga 
branch  of  the  Teutonic  Order.  Until  1856,  when  the 
ramparts  were  dismantled,  Riga  was  a  first-class  fortress, 
defended  by  the  Dvina  on  the  west  and  by  a  moat  towards 
the  east.  One  bastion  alone,  the  powder  tower,  into 
which  Swedish  cannon-balls  have  burrowed  deep,  has  been 
preserved. 


THE  BALTIC  PROVINCES  AND  POLAND    127 

Since  the  fortifications  were  dismantled,  the  city  had 
grown  rapidly,  on  both  banks  of  the  river,  around  the 
kernel  of  the  old  town.  Among  the  public  buildings  which 
sprang  up  during  the  last  half-century  were  new  post  and 
police  offices,  a  railway  office  and  a  new  station,  the 
Cotton  Exchange,  several  barracks,  a  polytechnic  college 
for  two  thousand  students,  a  number  of  schools,  new 
German  and  Russian  theatres,  a  Lettish  museum  and  club 
house,  and  above  all  the  stately  Orthodox  Cathedral, 
Among  the  new  monuments  are  statues  of  Peter  the  Great 
and  of  Barclay  de  Tolly,  the  son  of  a  Scottish  merchant 
family  long  settled  in  Riga,  who  commanded  the  Russian 
armies  during  the  earlier  phases  of  the  Napoleonic  in- 
vasion. Well-laid-out  parks  and  open  spaces,  with  accom- 
modation for  football  and  tennis,  abound.  A  death-rate 
of  only  18  per  1000  attested  the  excellent  hygienic  policy 
of  the  municipality. 

The  Dvina,  which  at  Riga  is  half  a  mile  wide,  is  spanned 
by  a  massive  iron  railway  bridge,  that  dwarfs  the  old 
pontoon  structure  below  it.  On  the  broad  stream  of  the 
river  steam-ferries  used  to  ply  between  the  old  town  and 
the  further  shore,  where  are  the  shipbuilding  yards  and 
the  fortress  of  Diinamiinde. 

Before  the  war,  although  Libau  carried  the  Russian 
transatlantic  traffic,  the  trade  of  Riga,  inward  and  out- 
ward bound,  stood  at  4,000,000  tons,  and  its  value  at 
£40,000,000.  This  trade  was  borne  in  almost  equal  pro- 
portions under  the  Russian,  the  German  and  the  British 
flags.  There  were  direct  services  with  Petrograd  and 
Libau  ;  with  Stockholm,  Copenhagen,  Rotterdam,  Ant- 
werp and  Rouen  ;  and  with  Dundee,  Leith,  Hull  and 
London. 

Among  the  chief  exports  were  flax,  hides  and  timber, 
to  the  value  of  £5,000,000  each.  Eggs  came  next ; 
1,000,000,000  of  them,  valued  at  £3,500,000.     Most  of 


128  COMMERCIAL  RUSSIA 

these,  together  with  about  £500,000  worth  of  Siberian 
butter,  found  a  market  in  the  United  Kingdom.  Cereals 
accounted  for  another  £1,000,000  ;  Unseed  for  £750,000  ; 
india-rubber  goods  for  £500,000.  The  chief  imports  in- 
cluded machinery,  £2,500,000  ;  india-rubber  and  copra, 
£2,000,000  ;  cotton  and  jute,  £1,000,000 ;  herrings  and 
tea,  £500,000  each. 

But  Riga  had  long  ceased  to  be  content  merely  to  fetch 
and  carry  for  others.  During  the  last  twenty  years 
several  hundred  factories  had  sprung  up,  including 
foundries,  cotton-spinneries,  pulp-mills,  china  factories, 
and  an  india-rubber  manufacturing  company,  which  was 
the  largest  of  its  kind  in  the  empire.  This  industrial 
development  had  brought  about  a  marked  change  in  the 
city  and  its  surroundings.  Two  years  ago  the  Russians 
started  scrapping  and  dismantling  all  this  comphcated 
machinery,  and  left  little  more  than  an  empty  shell. 
It  remains  to  be  seen  how  far  Riga,  after  the  war,  will  be 
able  to  get  back  on  to  its  new  high  road  to  prosperity. 
During  two  decades  of  industrial  activity  the  popula- 
tion had  doubled,  and  numbered,  before  the  exodus, 
over  500,000.  The  backbone  was  the  Baltic-German 
element.  It  amounted  to  between  40  and  45  per  cent. 
Together  with  an  enterprising  Lettish  element,  numbering 
15  to  20  per  cent.,  the  Lutheran  element  was  estimated 
at  about  60  per  cent.  The  Russian  and  Orthodox  element 
numbered  about  20  per  cent.,  and  the  Jews  about  15  per 
cent.  The  Russian  element  was  largely  accounted  for  by 
the  Bureaucracy. 

Under  the  regime  of  martial  law  the  German  element, 
says  a  correspondent  of  The  Times,  could  but  bow  to  the 
ordinances  prohibiting  the  German  language,  not  only  in 
official  intercourse,  but  also  in  private.  But  Russia 
would  be  the  poorer  if  the  spirit  which  created  the  great 
Repubhc  of  the  Baltic  should  be  crushed  out  of  existence. 


THE  BALTIC  PROVINCES  AND  POLAND    129 

I  If  the  city  did  not  exist  it  would  have  to  be  created.  A 
tradition  which  goes  back  five  hundred  years  before 
Peter  founded  his  burgh  on  the  Neva  is  an  asset  that  any 
empire  may  be  proud  of. 

With  all  her  intense  pursuit  of  practical  ends,  the  good 
sense  bred  of  independence  and  of  association  with  a 
larger  world  across  the  sea  saved  Riga  from  narrowness 
of  mind.  Riga  already  a  hundred  years  ago  was  more 
cultivated  than  either  Moscow  or  St.  Petersburg,  more 
appreciative  of  artistic  sweetness  and  light  even  than 
Konigsberg,  or  many  another  Prussian  town.  Riga  was 
never  a  university  town.  She  never  gave  birth  to  a  Kant. 
She  preferred  to  give  birth  to  his  publisher.  But  she 
welcomed  Herder  and  Hardenburg  within  her  walls. 
In  1837,  too,  Riga  applauded  Wagner's  lost  overture 
■ "  Rule  Britannia  "  and  sheltered  the  composer  while  he 
wrote  the  music  to  Bulwer's  "  Rienzi." 

With  the  same  just  sense  of  proportion  the  City  Fathers 
have  not  allowed  the  warehouses,  elevators  and  factory- 
shafts  of  the  new  era  to  efface  the  historic  aspect  of  the 
city.  The  towering  spires  of  the  old  Catholic  churches 
and  the  castle  still  dominate  the  foreshore  of  the  old 
town,  with  its  mile  of  open  market  on  the  quays  under 
the  shadow  of  gables  that  bear  the  hall-mark  of  the 
Hansa. 

Riga,  owing  to  its  splendid  water  and  rail  communica- 
tion with  the  forests  of  White  Russia  and  Volhynia,  is 
a  great  mart  for  timber.  No  better  wood  for  railway 
sleepers  can  be  obtained  in  the  whole  world,  and  hundreds 
of  thousands  were  exported  yearly  to  Great  Britain  and 
other  countries.  The  stoppage  of  such  an  enormous  trade 
would  be  a  serious  loss  to  this  country,  as  it  is  not  easy 
to  replace  this  particular  class  of  wood  for  the  purpose 
because  of  its  facihty  for  absorbing  creosote  and  its  re- 
siliency.    Also  the  freightage  on  this  timber  is  far  less 


130  COMMERCIAL  RUSSIA 


1 


than  from  America.    Pit  props  are  exported  in  enormou 
quantities,  as  well  as  flax  and  hemp. 

The  trade  of  the  port  consists  generally  of  coal,  cork- 
wood, dye,  pig-iron,  machinery,  steel,  coffee,  cottons, 
woollens,  fruit,  herrings,  tobacco,  wines,  spirits,  etc., 
and  the  exports  are,  in  addition  to  timber,  flax,  hemp, 
wheat — though  this  is  less  than  formerly — rye,  barley, 
oats,  seeds,  oilcake,  eggs,  butter  and  wood  goods.  A 
great  demand  is  anticipated  after  the  war  for  agricultural 
implements,  and  it  is  estimated  that  the  country  will 
want : 

150,000  ploughs  7,000  cultivators  and  spring  har- 
2,000  disc  harrows  rows 

1,000  field  harrows  4,000  thrashing  machines 

20,000  horse  rakes  4,000,000  scythes 

8,000  sorting  and  cleaning  500  tons  of  spades  and  shovels 

machines  600,000  hay  rakes 

/  Imports  of  foods  and  drugs  present  great  possibiKties 
rfor  British  manufacturers.  These  articles  mostly  came 
I  from  Germany  before  the  war,  and  some  idea  of  the 
extent  of  the  trade  may  be  gathered  from  the  fact  that  in 
1903  drugs  and  chemicals  to  the  value  of  5,416,900  roubles 
were  imported  into  Kiga.  Chemical  manures  were  im- 
ported to  the  value  of  4,241,900,  and  electrical  machinery 
and  accessories  for  use  in  the  Eiga  district  to  the  value  of 
3,235,000.  Imports  and  exports  have  been  shut  down 
altogether  during  the  war,  but  British  manufacturers 
were  looking  forward  to  a  greatly  enhanced  trade  with 
this  port  after  the  conclusion  of  hostihties.  Not  only 
is  the  German  element  very  strong  in  the  Baltic  provinces, 
and  especially  in  Eiga,  but  there  are  also  a  larger  number 
of  Letts  and  Esthonians,  adherents  of  the  Lutheran 
Church  and  out  of  sympathy  and  touch  with  the  Russian 
Church,  in  which  latter  is  largely  embodied  the  national 
sentiment  and  sympathy.     With  a  broader  view  of  the 


THE  BALTIC  PROVINCES  AND  POLAND    131 

duties  and  responsibilities  of  a  new  democratic  govern- 
ment towards  the  diversified  peoples  that  compose  its 
population,  a  better  national  spirit  and  closer  co-opera- 
tion may  be  expected,  and  this  will  tend  to  materially 
reduce  the  German  influence  that  has  so  long  prevailed. 

What  has  been  said  about  the  Baltic  provinces  applies 
in  even  greater  degree  to  Russian  Poland.  Three-fourths 
of  its  population  are  Roman  CathoUc,  only  seven  per  cent, 
are  members  of  the  Orthodox  Church,  and  more  than 
one-third  of  the  residents  of  Warsaw  were  Jews.  The 
language  is  entirely  different.  So  that  while  among  the 
Poles  there  was  no  very  great  affection  for  Germany, 
there  were,  on  the  other  hand,  no  close  ties  with  Russia. 
A  story  is  told  that  illustrates  the  point.  After  the  cap- 
ture of  Warsav/  a  German  general  was  quartered  in  the 
home  of  a  prominent  Pole.  At  dinner  one  day  he  said 
to  his  hostess,  ''Would  you  not  rather  be  under  the 
German  Government  than  the  Russian  ?  You  would 
have  greater  privileges,  more  liberty  and  less  interference." 
"  Sir,"  said  she,  ''  what  difference  does  it  make  to  the  ox 
whether  he  is  roasted  or  boiled  ?  " 

The  contiguity  of  Poland  to  Russia,  the  nearness  of  the 
German  factories  and  the  consequent  reduced  cost  of 
transportation,  the  ease  with  which  German  travellers 
could  cover  the  country,  the  number  of  German  traders 
who  had  settled  in  Poland,  the  Jews,  more  than  twice  as 
many  as  the  Russians  and  free  from  any  national  preju- 
dice, all  conspired  to  make  German  trading  with  Poland 
a  comparatively  easy  matter.  Moreover,  to  avoid  the 
heavy  Russian  tariffs  the  Germans  established  their  own 
factories  in  Poland.  Lodz,  from  a  town  of  60,000  in  1860, 
became  a  city  of  half  a  miUion,  of  which  Germans  and 
Jews  comprised  one-half.  Almost  all  its  industries  were 
in  German  hands,  the  Carl  Scheibler  factory  alone  em- 
ploying about  7500  workmen.    It  is  the  central  point  of  the 


132  COMMERCIAL  EUSSIA 

textile  industry  in  Poland,  its  annual  products  reaching  a 
value  of  fifteen  millions  sterling. 

In  Warsaw,  with  nearly  a  million  people,  much  the 
same  conditions  prevailed,  a  large  proportion  of  its 
factories  being  under  German  domination,  either  open  or 
disguised.  Its  traders,  merchants  and  agents  were  largely 
Jews.  It  is  impossible  to  predict  what  will  happen  in 
Poland  after  the  war.  Nearly  all  the  factories  not  under 
German  control  are  now  being  conducted  in  the  Moscow 
district  and  Southern  Russia,  all  the  plant  and  machinery 
having  been  transplanted  at  the  time  of  the  evacuation  of 
Warsaw  and  the  surrounding  districts.  It  is  very  doubtful 
if  these  will  again  return  to  Poland.  If  Poland  regains 
its  independence  at  the  instance  of  Russia  and  its  alUes 
and  shares  in  the  retrictions  that  will  be  made  on  German 
commerce,  it  will  again  recover  its  old-time  prestige,  and 
become  a  valuable  market,  as  well  as  a  producing  centre. 


XIII 

THE   URAL   MOUNTAINS   AND 
EKATERINBURG 

The  Ural  Mountains — Metallurgical  works — Ural  charcoal  iron — Mineral 
deposits — Possibilities  of  the  district— Articles  required— Industries  to  be 
developed— Existing  industries — Imports  into  Ekaterinburg— Opportuni- 
ties for  educated  technical  labour. 

THE  Ural  Mountains  is  a  range  of  low-lying  hills  on 
the  eastern  border  of  European  Russia,  and  almost, 
but  not  quite,  dividing  it  from  Siberia.  Both  the  railway 
from  Petrograd  and  that  from  Moscow  cross  these  moun- 
tains en  route  to  Siberia,  but  the  grade  is  so  little  and  the 
height  so  insignificant  that  no  tunnels  are  required,  and 
in  fact,  one  scarcely  notices  the  difference.  Ekaterinburg, 
the  centre  of  this  huge  mining  district,  is  a  town  of  about 
100,000  inhabitants,  and  is  1,300  miles  distant  from 
Petrograd.  The  importance  of  the  Urals  may  be  gauged 
by  the  fact  that  two-fifths  of  the  total  production  of  the 
mines  and  metallurgical  works  of  the  whole  Russian 
Empire  in  normal  times  are  credited  to  that  area,  which 
includes  the  governments  of  Perm,  Tobolsk,  Krasnoou- 
fimsky,  Orenburgsky  and  Oufimsky,  the  total  being 
19,000,000  pounds  sterling  as  against  48,000,000  in  the 
empire. 

There  are  no  fewer  than  78  private  and  14  Government 
works  engaged  in  metallurgy  in  the  Urals,  and  the  total 
of  their  pig-iron  production  in  1913  was  902,200  tons  ;  of 
manufactured  iron,   steel,   and   rails,    615,085  ;     and   of 

133 


134  COMMERCIAL  RUSSIA 

copper  15,596.  In  the  five  years'  period  1907-11  the 
production  of  copper  increased  98  per  cent. 

The  quality  of  the  iron  smelted  in  the  Urals  is  highly 
praised  in  Europe,  owdng  to  the  fact  that  charcoal,  not 
coke,  is  employed  in  the  smelting  process.  That,  however, 
means  costher  production.  As  the  exhaustion  of  the 
forests  in  the  immediate  vicinity  of  the  Ural  works  (Ekater- 
inburg) is  now  approaching,  either  new  railways  will  have 
to  bring  charcoal  from  the  north  or  a  suitable  coking  coal 
be  found  in  the  Urals.  Several  attempts  have  been  made 
in  the  way  of  briqueting  and  coking  the  inexhaustible 
quantity  of  peat  in  the  Urals,  but  so  far  mth  httle  practical 
success.  There  are,  however,  unlimited  possibihties  for 
anybody  capable  of  solving  this  problem. 

In  addition  to  iron  and  copper,  the  valuable  mineral 
deposits  of  the  Urals  include,  in  the  following  order  of 
developed  importance— coal,  platinum,  salt,  gold,  asbestos, 
sulphuric  pyrites  and  chrome.  About  95  per  cent,  of  the 
world's  platinum  comes  from  the  Urals.  Besides  the 
metals  and  minerals  mentioned,  considerable  quantities 
of  precious  stones,  including  emeralds,  topaz,  chrysoberyl 
and  aquamarine,  are  produced  ;  also  stones  that  can  be 
beautifully  ground  and  pohshed,  such  as  hornstone,  mala- 
chite, jasper,  serpentine  and  other  silicious  rocks.  Graphite 
mining  has  been  commenced  in  the  vicinity  of  Ekaterinburg 
and  small  quantities  sold.  Special  hues  of  railway  have 
been  constructed  to  connect  the  main  line  with  the  various 
mining  towns,  Ekaterinburg  being  the  junction  of  no  less 
than  seven  different  Unes. 

Notwithstanding  the  immense  possibihties  of  this 
district  and  the  repeated  urgent  representations  of  the 
Vice-Consul,  Mr.  Thomas  H.  Preston,  one  of  the  really 
live  British  representatives  in  the  Russian  Consular 
Service,  very  httle  has  been  done  by  British  manufac- 
turers to  take  advantage  of  the  magnificent  opportuni- 


URAL  MOUNTAINS  AND  EKATERINBURG     135 

ties  here  afforded.  It  is  a  part  of  the  country  very  seldom 
visited  by  their  representatives,  presumably  because  it 
is  about  three  days'  journey  from  Petrograd,  with  only  such 
unimportant  towns  as  Vologda,  Viatka  and  Perm  en  route. 

.In  a  recent  consular  report  Mr.  Preston  says  :  The 
^r^vantages  to  be  gained  by  commercial  relations  between 
/the  Urals  and  the  United  Kingdom  can  be  divided  into 
/  three  categories,  e.g.  : 

(a)  Import  of  manufactured  material  from  the  United 
\  Kingdom  into  the  Urals  to  as  far  as  possible  replace  the 
'gap  left  by  Germany  in  her  imports  (former)  ; 

(h)  The  investment  of  capital  in  sundry  industries,  the 
object  of  which  would  be  to  utihse  the  different  raw 
materials  available  on  the  spot  for  the  manufacture  of 
many  articles  which  were  formerly  imported  from  abroad, 
and 

(c)  The  export  of  such  raw  materials  which  are  not 
manufactured  in  Russia,  and  which  generally  by  their 
export  duties  make  them  a  lucrative  business. 

The  following  articles  may  be  attributed  to  the  first 
category  :  Pharmaceutical  products  and  chemicals,  in- 
cluding cyanide  of  potassium  for  gold  mining ;  Machinery  : 
electrical  plants,  turbines,  steam-engines,  locomobiles, 
mining  machinery,  including  ore-reducing  plant,  hauUng 
plant,  pumps,  metallurgical  plant  and  other  mining 
requisites  ;  wood  -  cutting  machinery,  hardware,  glass 
ware,  haberdashery,  hosiery,  leather  goods,  ornaments, 
stationery,  office  furniture,  photographic  outfits,  sporting 
outfits,  cheap  jewellery,  toilet  outfits,  soaps  and  perfumes, 
musical  instruments,  cycles  and  motor  bicycles,  and  the 
following  metals  :  high-speed  steel,  aluminium,  wolfram, 
zinc,  spelter  and  lead. 

The  second  category  embraces  so  many  possibilities 
that  it  is  impossible  to  mention  them  all  in  this  short 
report.    To  mention  a  few,  however  : 


136  COMMERCIAL  RUSSIA 

Manufacture  of  cutlery,  hardware,  cement,  cyanide, 
fire-bricks,  wire  rope,  tanning,  etc.,  etc. 

To  the  third  category  may  be  attributed  only  a  few  of 
the  raw  materials  produced,  owing  to  the  great  consump- 
tion of  such  locally. 

The  following  are  the  chief  objects  of  export : 

Platinum.  Hitherto  almost  exclusively  exported  to 
Europe,  on  which  market  it  is  practically  dependent. 

Asbestos.    Very  much  in  the  same  position  as  platinum. 

Timber,  Precious  Stones,  Furs,  Wheat  and  Farm- 
ing Produce  (chiefly  from  Siberia). 

Besides  the  mining  and  metallurgical  works  mentioned 
in  this  report  there  are  the  following  other  industries  in 
the  Urals,  most  of  which  have  only  been  commenced 
during  the  fast  few  years. 

Cement  works  (3)  since  1913  Glass  (bottle)  factories 

Paper  mills  Match  factories 

Brick  factories  Sack  and  bag  factories 

Sulphuric  acid  factories  Cloth  (rough)  factories 
Numerous  mechanical  works 

The  profits  made  on  the  turnover  of  these  factories  are 
seldom  less  than  30-40  per  cent. 

The  scope  for  importing  manufactured  goods  into  the 
Urals  from  the  United  Kingdom  is  very  considerable.  To 
give  some  actual  figures  four  firms  in  Ekaterinburg  have 
approximately  the  following  turnovers,  75  per  cent,  of 
which  has  been  Grerman  imported  goods  : 

One  of  the  General  Stores  selling  hosiery,  haberdashery, 
stationery,  ornaments,  ready-made  clothing,  boote, 

shoes,  toilet  outfits,  groceries,  tobacco,  etc.,  etc.     .  Rs.  4,000,000 

Electrical  machinery  (German)         ....  15,000,000 

Other  machinery  .         .   ■ 12,000,000 

Flour  milling 5,000,000 

In  all  there  are  over  thirty  large  agencies  in  Ekaterin- 
burg doing  business  in  machinery  and  electrical  supphes. 


UEAL  MOUNTAINS  AND  EKATERINBURG      137 

Agricultural  machinery  is  practically  all  supplied  by 
local  and  American  firms,  so  that  there  is  Httle  to  be  done 
in  this  hne  at  any  rate  as  far  as  the  Urals  are  concerned. 

Owing  to  the  restrictions  to  be  imposed  on  the  Germans 
in  future,  e.g.  prohibiting  them  from  occupying  positions 
of  authority,  there  should  be  a  lack  of  educated  technical 
labour,  as,  for  instance,  mechanical  engineers,  mining 
engineers,  electrical  engineers  and  commercial  men,  etc. 
There  seems  no  reason  why  qualified  men  of  British 
nationality  should  not  fill  their  places.  Some  sHght  know- 
ledge of  the  Russian  language  would  be  essential.  Few 
districts  in  Russia  afford  such  potential  possibilities  of 
every  description  as  Ekaterinburg  and  the  Ural  Moun- 
tains ;  there  is  scarcely  one  that  is  more  neglected  or  so 
Uttle  known. 


XIV 
FINLAND 

Entirely  distinct  from  Russia — Principal  towns — Paper  mills— Imports — 
Catalogues — Prospects. 

F[  any  list  of  British  Consulates  in  Eussia,  or  of  Russian 
towns,  will  be  found  Helsingfors,  Viborg,  Abo  and 
other  Finnish  towns.  But  Finland  is  much  more  distinct 
from  Russia  than  any  other  part  of  the  empire,  not  ex- 
cepting the  Caucasus.  It  has  its  own  language  and  its 
own  coinage  and  weights  and  measures.  It  has  its  own 
tarifis  and  customs  administration.  Even  in  the  large 
towns  Russian  is  understood  by  comparatively  few,  and 
hardly  at  all  in  the  country  districts.  The  gilt  and 
coloured  domes  of  the  Russian  churches  are  conspicuous 
by  their  absence.  The  signs  over  the  shops,  the  news- 
papers are  all  Finnish.  So  that  whatever  form  Fiimish 
independence  may  take  does  not  in  any  way  affect  the 
commercial  relations  between  this  country  and  Finland. 

When  all  this  is  remembered,  it  is  obvious  that  Russian 
agents  are  of  very  little  use  in  Finland,  which  should  be 
dealt  with  on  an  entii'ely  different  basis.  As  I  write  a 
letter  comes  to  hand  from  one  of  the  Vice-Consuls.  He 
says  :"  It  is  of  the  greatest  importance  for  firms  to  send 
representatives  to  this  country  to  open  up  new  business 
relations  and  to  make  themselves  personally  acquainted 
with  their  customers  and  their  requirements,  local  con- 
ditions and  circumstances. 

"  Finland  is  distinct  as  from  Russia  ;    it  is  no  good 

138 


FINLAJS'D  130 

sending  Russian  pamphlets  and  catalogues  out  here,  where 
the  languages  are  Finnish  and  Swedish. 

''  I  have  always  advocated  the  opening  in  this  country 
of  a  central  office  representing  various  trades,  and  in 
touch  with  British  firms  engaged  in  those  trades. 

''  Such  an  office  being  on  the  spot  would  be  able  to 
correspond  with  Finnish  firms  in  their  own  language, 
offering  their  quotations  c.i.f.  in  the  weights,  measures 
and  currency  of  the  country,  and  would  be  able  to  be  in 
touch  with  all  requirements  in  the  various  branches  of 
industry  in  the  country,  and  thus  be  in  a  position  to 
divert  a  great  deal  of  trade  to  Britain." 

The  same  results  could,  of  course,  be  obtained  by  the 
appointment  of  reliable  agents  at  Helsingfors,  the  prin- 
cipal town. 

Finland  is  about  20  per  cent,  larger  than  the  British 
Isles,  but  nearly  11  per  cent,  of  its  area  is  composed  of  the 
lakes  which  are  a  characteristic  feature  of  the  country. 
The  population  is  between  three  and  four  milHons,  rather 
more  than  Wales  and  not  so  great  as  Scotland  or 
Ireland. 

The  principal  towns  with  population  at  the  census  of 
1913  are  : 


Helsingfors 

.   161,091 

Vasa 

.       .    23,275 

Abo    . 

.     52,057 

Uieaborg 

.       .    21,271 

Tammerfors 

.     46,192 

Bjorneborg 

.       .     17,072 

Viborg 

.     28,257 

Kuopio  . 

.       .    15,845 

Kotka    . 

.       .    11,609 

One  of  the  principal  industries  in  Finland  is  the  manu- 
facture of  paper,  ten  of  the  mills  making  hand  paper 
having  been  established  over  one  hundred  years  ago.  There 
are  now  seventeen  chemical  pulp  mills  in  Finland,  the 
bulk  of  the  products  of  which  are  exported  to  Russia. 

When,  in  view  of  the  war,  the  Russian  paper  factories 
were  unable  to  satisfy  the  huge  demand  for  newspaper 


140  COMMERCIAL  RUSSIA 

paper,  and  a  paper  famine  began  to  threaten  the  Russia 
Press,  G.  R.  Bierkenheim,  director  of  the  Finnish  Joint 
Stock  Company  Kiummene,  came  to  the  rescue.  This 
company  owns  three  great  paper  mills  which  supply  paper 
to  more  than  three  hundred  Russian  papers.  Thanks  to 
the  energy  and  indefatigable  labours  of  Mr.  Bierkenheim, 
the  output  of  the  Kiummene  company  has  been  raised  to 
unprecedented  dimensions.  This  factory  now  produces 
annually  more  than  seven  milHon  pounds  (112,000  tons) 
of  paper  pulp  and  paper,  endeavouring  thereby  to  provide 
for  the  needs  of  the  Russian  Press.  It  is  interesting  to 
note  that  the  joint  stock  company,  Kiummene,  is  now 
regarded  as  the  biggest  enterprise  of  the  paper  industry, 
not  only  in  Russia,  but  in  all  Europe. 

The  Acting  British  Consul  at  Helsingfors  reports  that, 
with  a  view  to  saving  expense  and  trouble,  nearly  all  the 
Finnish  paper  mills  have  decided  to  become  members  of 
a  society  which  has  been  formed  mainly  for  the  purpose 
of  buying  in  co-operation  raw  materials  for  the  various 
mills,  such  as  sulphurous  earth,  china-clay,  chlorate  of 
hme,  calcium  of  soda,  glauber  salts,  limestone,  lime,  resin, 
sulphur,  lead,  hoop-iron,  iron  wire,  and  jute  cloth. 

The  bulk  of  Finland's  imports  in  1913,  amounting  to 
£19,813,600,  and  the  exports,  amounting  to  £16,142,000, 
were  discharged  at  or  forwarded  from  Helsingfors.  Fin- 
land's chief  import  from  the  United  Kingdom  was  coal, 
which  amounted  to  497,600  metric  tons,  out  of  a  total  of 
536,900. 

Germany  led  in  the  following  classes  of  goods  : 

Boots  and  shoes  (87  per  cent.)  \VTieat  flour 

Cakes  for  cattle  Fishing  nets 

Cast  iron,  etc.  Fruits  (dried) 

Castings  Grapes 

Clothes  (silk)  Hides 

Clothes  (cotton,  linen,  etc.)l  Iron  (pig,  ordinary  black) 


FINLAND 

Cocoa 
Coffee 
Cotton  wool 

Iron  (forged,  planed,  and 

drilled) 
Looking-glasses 

Oranges 

Silk  (cloth,  velvet,  etc.) 

Soda  (including  caustic) 

Starch 

Sjmip 

Tanning  preparations 

Tea 

Timber  (odorous) 

Machines  (iron  and  steel) 
Machines  (copper) 
Machine  belts 
Wheat  (crushed) 
Wines  (in  casks) 
Wines  (in  bottles) 
Woollen  yarn 
Woollen  coloured 

141 


In  a  Vice-Consular  report  from  Abo  it  is  stated  that 
much  of  the  trade  that  had  found  its  way  into  German 
markets  could  be  diverted  to  the  British  if  firms  would 
send  representatives  regularly  to  Finland,  or  appoint 
agents. 

Keporting  from  Bjorneborg,  the  Vice-Consul  says  that 
most  of  the  cotton-spinning  and  weaving  machinery  has 
come  from  the  United  Kingdom,  while  most  of  the 
machinery  for  dyeing,  bleaching  and  raising  has  come 
from  Germany.  The  chief  import  of  Tammerfors  in  1913 
was  cotton,  which  amounted  to  7,678,100  lbs.  Of  that 
total  6,662,100  lbs.  came  from  Bremen,  and  1,014,000  lbs. 
from  Liverpool. 

From  Viborg  it  was  reported  that  machinery,  chiefly 
electrical,  was  supphed  by  German  firms.  In  respect  of 
agricultural  machinery  and  implements,  the  United 
Kingdom  ranked  fourth  to  Germany,  Sweden  and  the 
United  States. 

H.M.  Consul  at  Helsingfors  confirms  my  correspondent 
by  pointing  out  that  it  is  useless  sending  catalogues  to 
Finland  in  the  English  language.  Catalogues  should  be  in 
the  Swedish  language,  or,  even  better,  in  Swedish  and 
Finnish.  British  weights  and  measures  are  but  imper- 
fectly understood,  and  it  is  most  desirable,  therefore,  that 
the  metric  system  should  be  used. 

In  competing  with  British  trade  foreign  firms  obtained 


142  COMMERCIAL  RUSSIA 

a  great  advantage  by  keeping  large  stocks  in  the  country, 
especially  of  such  staple  articles  as  belting,  chemicals 
(particularly  those  for  the  paper  trade),  coffee,  etc.  This 
plan  also  enabled  them  to  quote,  in  the  currency  of  the 
country,  prices  either  duty  paid  Finland  or  for  delivery 
at  the  premises  of  the  buyer. 

Travellers  of  German  firms  were  always  to  be  found 
all  over  Finland.  They  spoke  the  language  of  the  country, 
quoted  prices  in  Finnish  currency,  carried  samples  of  all 
their  wares,  and  worked  each  place  thoroughly  by  caUing 
upon  both  large  and  small  firms.  In  contrast  with  this 
a  British  traveller  was  hardly  ever  seen  in  Finland,  and 
when  one  did  turn  up  he  generally  did  not  know  the 
language  of  the  country,  he  usually  quoted  f.o.b.  a 
United  Kingdom  port  and  in  sterhng,  his  visits  were 
confined  to  three  or  four  of  the  largest  towns,  and  in 
those  towns  he  usually  visited  only  the  largest  firms. 

Again,  as  regards  agents,  German  firms  appointed 
agents  freely  wherever  they  found  there  was  any  sale  for 
their  goods.  In  a  very  high  percentage  of  cases  they  sent 
stocks  of  their  goods  to  these  agents,  who  settled  quarterly 
for  those  that  had  been  disposed  of  in  that  period.  It  was 
very  largely  owing  to  this  arrangement  that  the  Germans 
captured  the  local  market  for  belting.  When  German 
agents  ascertained  that  local  buyers  had  been  offered 
firm  prices  by  British  traders,  in  numerous  instances  they 
were  instructed  by  their  German  principals  to  quote  at  a 
cheaper  rate. 

There  is  no  doubt  that  British  firms  working  for  the 
export  trade  would  find  it  advantageous  to  pay  more 
attention  to  wrapping  and  packing.  Thus,  many  German 
firms  supphed  goods  for  the  Finnish  market  with  the 
description,  etc.,  of  the  goods  printed  in  the  Swedish  and 
Finnish  languages. 
Another  matter  about  which  complaints  are  made  is 


FINLAND  143 

the  difficulty  experienced  by  local  tailors  and  other  buyers 
of  British  cloth  in  getting  consignments  suitable  for  their 
requirements.  Finland  is  a  small  country,  and  what 
these  buyers  want  are  consignments  of  various  small  lots 
of  different  cloths,  whereas  British  sellers  generally  sell  by 
the  piece.  The  German  middlemen  used  to  make  up  con- 
signments of  small  lots  according  to  the  orders  of  the 
local  buyers,  and  it  seems  to  have  paid  them  well  to  do 
this. 

A  well-informed  writer  in  the  Manchester  Guardian 
admirably  sums  up  the  Finnish  outlook.     He  says  that 
the  future  of  Finland,  if  all  goes  well  with  her  politically, 
contains  good  promise  of  progress  and  prosperity.     Ad- 
ministratively divided  into  eight  provinces  connected  by 
a    well-developed    railway    system    aggregating    nearly 
2000  miles  in  length,  and  for  the  most  part  belonging  to 
the  State,  and  intersected  in  various  directions  by  canals 
and  navigable  rivers  of  a  total  length  of  2,760  miles,  it 
is  also  covered  by  schools  which  make  the  Finnish  people 
one  of  the  best  educated  in  the  world  and  form  the  moral 
basis  of  the  political  and  social  Hfe  of  the  country.    All 
Finns  are  literate,  all  read  newspapers,  and  all  are  in- 
tensely interested  in  the  affairs  of  the  world,  in  spite  of 
the  apparent  provincialism  of  their  everyday  existence. 
Their  towns — Helsingfors  with  160,000,  Tammerfors  with 
46,000,  Abo  with  52,000,  Uleaborg  with  21,000  inhabi- 
tants— are  well  laid  out  in  wide  and  airy  streets,  and 
Helsingfors,  the  capital,  is  liberally  provided  with  monu- 
mental buildings,   expensive  parks,   monuments,   educa- 
tional establishments,  and  conveys  the  impression  of  a 
thoroughly   up-to-date    European   city.       The   financial 
position  of  the  country  is  quite  sound.    The  public  debt — 
incurred  for  the  most  part  for  productive  purposes,  such 
as    railways — does    not    exceed    £10,000,000,    while    the 
property  of  the  State  has  a  capital  value  of  £36,000,000. 


144  COMMERCIAL  RUSSIA 

The  trade  of  Finland  amounted  in  1913 — the  last  com- 
plete   year    for    which    data    are    available — to    nearly 
£20,000,000  in  imports,  and  to  more  than  £16,000,000  in 
exports.     The  main  articles  of  imports  were  agricultural 
produce  to  the  value  of  £2,800,000  (from  Russia  and  Ger- 
many), groceries  and  colonial  produce  (value  £2,000,000), 
of  which  half  came  from  Germany  and  rather  less  than 
half  from  Russia,  and  textiles  and  machinery,  of  which 
a  good  deal  came  from  this  country.    The  exports  were 
to  the  extent  of  more  than  one  half  made  up  of  timber 
(of  which  this  country  was  the  largest  single  buyer),  of 
wood  pulp  and  paper  goods  (£2,700,000),  of  which  Russia 
was  by  far  the  largest  buyer,  with  the  United  Kingdom 
as  second,  and  farm  produce  (£1,800,000),  which  practi- 
cally all  went  to  Russia.     It  is  seen  from  this  that  the 
chief  wealth  of  the  country  is  its  forests,  the  exploitation 
of  which  for  timber  and  wood  pulp  is  great  and  becoming 
ever  larger.    But  also  the  mineral  wealth  of  the  country 
is  considerable  and  awaits  development.    There  is,  further, 
plenty  of  scope  for  capital  and  enterprise  in  pubhc  works, 
such  as  tramways,  lighting,  drainage,  etc.,  in  the  engineer- 
ing and  chemical  lines  (in  conjunction  with  the  utihsation 
of  water  power),  and  in  the  supply  of  textiles  and  colonial 
produce. 


XV 
SIBERIA 

Its  size — Physical  features— Agricultural  implements — Ploughs — Threshing 
machines — Small  tractors — Dairy  appliances  —Lack  of  transport  facilities 
— New  railways  opened — Supplies  required  for  railway  construction — 
Additional  cold-storage  facilities — Grain  elevators — Possibilities  for  future 
trade — Present  trade  situation. 

SIBERIA  has  an  area  of  4,784,034  square  miles,  is 
half  as  large  again  as  the  whole  of  Europe,  and  more 
than  forty  times  larger  than  the  United  Kingdom.  It 
extends  from  the  Ural  Mountains  (59°  E.  Long.)  on  the 
west,  to  the  Sea  of  Japan  and  the  Okhotsk  and  Behring 
Seas  on  the  east  (174.24°  E.  Long.),  and  from  the  Arctic 
Ocean  on  the  north  to  China  on  the  south. 

Western  Siberia,  from  the  Urals  to  the  Yenisei,  is  for 
the  most  part  a  flat  plain,  with  good  arable  land  in  its 
central  and  southern  portions.  Eastern  Siberia,  which 
is  three  times  as  large,  is  mountainous  and  less  fertile, 
labouring  under  the  disadvantages  of  a  severe  climate  in 
its  western  part  and  of  periodical  inundations  in  the  east. 
In  Northern  Siberia  most  of  the  ground  is  covered  with 
forest  gradually  passing  over  into  a  waste  of  barren  lands 
which  are  frozen  for  the  greater  part  of  the  year  and 
marshy  in  the  summer.  To  the  south  and  south-east 
are  the  Altai  Mountains,  with  peaks  from  10,000  to 
15,000  feet  high,  while  five  rivers,  each  nearly  3000  miles 
long,  empty  their  waters  into  the  Arctic  Ocean  and  the 
Sea  of  Okhotsk.  The  temperature  ranges  from  extreme 
heat  to  extreme  cold.    The  great  majority  of  the  nearly 

L  145 


146  COMMERCIAL  RUSSIA 

twelve  million  inhabitants  of  Siberia,  especially  those  in 
the  towns  and  along  the  railway,  are  Russians,  including 
free  emigrants  (peasants  and  Cossacks)  and  the  exiles 
and  their  descendants.  The  Turkish  (Kirghizes,  Tartars, 
Yakuts),  Finnish  and  Mongolian  races  are  also  represented. 

The  popular  impression  of  Siberia  as  one  huge  waste 
has  in  recent  years  been  largely  dissipated.  The  opening 
of  the  Trans-Siberian  railway  about  fourteen  years  ago 
has  given  a  better  idea  of  the  country  and  added  to  its 
potentialities  of  development. 

Nearly  half  of  the  trade  of  Siberia  has  been  done  through 
Moscow,  but  there  is  a  very  strong  and  growing  feeling 
in  favour  of  more  direct  trading.  Moscow  agents  with 
contracts  covering  the  whole  of  Russia  are  either  likely 
to  ignore  this  important  section,  or  to  depend  upon  sub- 
agents,  whose  commission  adds  to  the  cost  of  the  goods 
to  the  consumer.  The  exports  to  Siberia  have  been 
largely  connected  with  the  agricultural  industry,  but  with 
the  growth  of  population  has  arisen  a  demand  for  articles 
of  general  use. 

In  the  plains  of  Western  Siberia  are  exceptionally  fertile 
lands  supporting  8,000,000  people,  exclusive  of  the  urban 
population.  During  the  five  years  1909  to  1913  the  area 
of  new  lands  opened  up  for  settlement  by  emigrants 
from  European  Russia  was  75,850  square  miles,  and  the 
nimaber  of  settlers  was  2,000,000.  The  completion  of 
the  new  railway  programme  and  the  consequent  opening 
of  new  districts  should  result  in  future  emigration  on  a 
still  larger  scale.  Emigration  to  Siberia  is  regulated  by 
a  colonisation  bureau  established  in  connection  with  the 
Department  of  Agriculture.  Most  of  the  settlers  take 
up  land  on  the  communal  basis  ;  the  title  remains  in  the 
Crown,  but  the  peasant  obtains  the  use  of  the  land  free 
for  the  first  five  years,  and  thereafter  in  return  for  taxes. 
The  Government  has  established  depots  for  the  sale  on 


SIBEKIA 


147 


easy  terms  of  agricultural  implements,  experimental 
stations  for  testing  farm  machinery,  and  institutes  for 
agricultural  instruction.  Small  holdings  are  the  rule  in 
Siberia.  No  immediate  market  is  to  be  expected,  there- 
fore, for  the  more  expensive  types  of  farm  machinery. 

A  large  proportion  of  the  less  complicated  machinery 
and  implements  is  manufactured  in  Russia  by  establish- 
ments started  by  British  and  German  enterprise.  Most  of 
the  factories  are  located  in  South  and  Central  Russia.  For 
other  agricultural  machinery  Western  Siberia  depends  on 
imports. 

An  important  part  in  the  distribution  of  agricultural 
implements  is  taken  by  the  depots  of  the  Imperial  Colon- 
isation Bureau.  In  1909  there  were  64  of  these  depots 
in  Siberia  ;  in  1913  there  were  300,  of  which  220  were 
in  Western  Siberia.  The  sales  in  1913  amounted  to 
7,500,000  roubles,  and  the  value  of  the  implements 
imported  into  Siberia  for  the  use  of  these  depots  amounted 
to  8,400,000  roubles.  The  implements  supplied  must 
be  of  Russian  manufacture,  if  possible,  though  exception 
is  made  of  American  harvesting  -  machinery.  In  spite  of 
the  liberal  credit  terms  of  the  depots,  their  dealings  are 
confined  chiefly  to  the  less  prosperous  peasants,  and  a 
large  field  remains  open  to  outside  competition. 

The  hinds  of  implements  in  demand.  The  following 
statement  giving  the  number  of  agricultural  machines 
and  implements  sold  at  the  depots  of  the  Imperial  Colonisa- 
tion Bureau  in  Siberia  during  1912,  1913,  1914  and  1915 
indicates  the  nature  of  the  trade  in  agricultural  machinery  : 


Single  ploughs 

Double  ploughs  

Ploughs  and  seeders  combined 

Cultivators 

Harrows 


1912 

1913 

1914 

No. 

No. 

No. 

37,315 

35,794 

30,868 

1,563 

4,198 

3,834 

1,021 

1,934 

1,128 

249 

497 

438 

645 

1,010 

1,291 

1915 

No. 


19,107 

3,908 

1,144 

315 

510 


148 


COMMERCIAL  RUSSIA 


Broadcast  seeders    

Broadcast  seeders  and  disc  drills 

Mowers  

llayrakes    

leaping  attachments 

llussian  hand -rake  reapers 

Keapers,  other  

Binders 

Thrashers,  horse  power    

Thrashers,     home-made,    hand 

power    

Winnowers  and  cleaners 

Grain  sorters    

Millstones  (sets)  

Carding  machines    

Chaff  cutters 

Hay  presses    

Cream  separators 

Churns    

Wagons 

Pump  fire  engines    

Weighing  machines 

Sickle  and  scythe  grinders    

Axes    

Forks 

Shovels  

Scythes 


1912 

No. 


247 
965 
7.184 
6,427 
1.87fi 
4,732 
5,782 
893 
1,426 

2,089 

7,060 

422 

446 

140 

846 

5 

289 

154 

2,483 

43 

501 

2,087 

2,087 

3,123 

154 

6,225 


1913 

No. 


264 
473 
2,955 
2,962 
1,206 
3,023 
3,014 
1,150 
1,234 

1,845 

6,205 

347 

576 

154 

374 

15 

343 

173 

2,891 

45 

454 

1,081 

1,801 

3,271 

1,362 

7,213 


1914 

No.' 


1915 

No. 


354 

453  I 
4,631  I 
3,879 
1,813  I 
3,776 
4,001 
1,384 
1,110 

2,544 

6,991 

346 

402 

124 

444 

89 

434 

184 

3,315 

48 

525 

2,023 

2,023 

4,202 

1,887 

7,495 


229 

946 

2,669 

2,260 

1,228 

1,910 

1,866 

450 

212 


4,849 

211 

166 

66 

180 

4 

258 

135 

2,259 

47 

192 

978 

978 

2,628 

2,591 

6,050 


Before  the  war  the  usual  credit  granted  to  purchasers  of 
farm-operating  equipment  extended  over  two  harvests  ; 
for  heavy  machinery  the  period  was  two  to  three  years. 
The  losses  from  non-payment  of  debts  have  been  neghgible 
in  comparison  with  the  total  turnover. 

Imports  of  agricultural  implements  have  now  practi- 
cally ceased,  and  the  Russian  factories  for  the  most  part 
have  been  busy  in  other  directions.  Stocks  have  been 
cleared  off  and  a  business  has  sprung  up  in  overhauling 
and  selling  old  machines.  After  the  war  all  kinds  of  farm- 
operating  equipment  will  be  required  in  large  quantities. 
Manufacturers  could   doubtless  find  suitable  representa- 


SIBEEIA  149 

tives ;  but  by  establishing  a  branch  for  the  territory  at 
some  central  point,  preferably  at  Omsk,  the  necessity  of 
sharing  the  profits  with  more  than  one  dealer  could  be 
avoided.  Manufacturers  should  send  sample  machines  for 
testing. 

The  type  of  f  lough  in  use.  The  number  of  ploughs  sold 
in  Western  Siberia  exceeds  100,000  per  year  and  the 
greater  number  are  of  Russian  manufacture.  The  Russian 
ploughs  are  roughly  but  strongly  finished,  and  are  both 
hght  in  weight  and  cheap,  the  two  quahties  most  essential 
in  Western  Siberian  trade.  The  Western  Siberian  soil  is 
clay  covered  with  a  layer  of  black  earth  twelve  to  eighteen 
inches  deep,  which  yields  easily  to  the  plough.  The  fur- 
row is  usually  three  to  five  inches  deep.  The  plough 
with  the  single -curve  share  is  considered  most  suitable. 
Nearly  all  the  ploughs  sold  are  fitted  to  a  German  fore- 
carriage.  The  walking  plough  is  used  almost  exclusively. 
The  weight  of  the  one-share  ploughs  sold  is  145  to  190  lbs. 
There  is  a  small  demand  for  heavy  ploughs.  The  single- 
furrow  plough  has  the  largest  sale. 

Ploughs  with  seeders  combined  are  in  growing  demand. 
The  four-share  size  with  a  lever  is  the  most  popular,  com- 
bined with  a  seeder  that  drops  the  seed  into  the  open 
furrow,  the  next  following  share  covering  it.  The  use  of 
three  and  four  furrow  gang  ploughs  is  increasing,  and 
there  is  also  a  limited  sale  for  the  larger  sizes  of  gang 
ploughs  among  the  more  well-to-do  landowners.  The 
gajig  ploughs  manufactured  for  this  market  should  embody 
the  principal  features  of  the  single  ploughs  sold,  such  as 
hght  weight,  and  should  also  have  more  clearance  than 
is  usual  with  American  gang  ploughs. 

Disc  drills  have  become  popular  in  Western  Siberia. 
Plain  drill  seeders  with  seven  to  nineteen  drills  also  have 
a  large  sale.  Disc  harrows  are  coming  into  favoiM*.  Spring- 
tooth  harrows  on  wheels  are  also  largely  used,  as  also  are 


150  COMMERCIAL  RUSSIA 

cultivators.  The  seven-tooth  cultivator  is  most  in  demand, 
but  the  tendency  for  the  teeth  to  become  clogged  with 
earth  is  a  defect. 

The  trade  with  Western  Siberia  in  comphcated  agricul- 
tural machinery  is  largely  dominated  by  the  sales  of  an 
American  company  near  Moscow,  supplemented  by  im- 
ports from  Canada  and  the  United  States  and  by  the 
products  of  other  manufacturers  in  Russia.  Russian 
manufacturers  devote  their  attention  chiefly  to  the  lobo- 
greika,  or  hand-rake  reaper.  This  machine  is  a  very 
cheap  reaper  with  a  reel  and  requires  an  extra  person, 
seated  on  the  outer  back  corner  of  the  platform,  who 
does  the  raking  oif  with  a  pitchfork.  The  lobogreika  is 
popular  because  it  can  be  used  for  either  grain  or  grass. 
Large  numbers  of  mowers  and  horse-rakes  are  sold.  A 
one-horse  rake  8  feet  wide  with  thirty  working  and  two 
stationary  prongs  and  a  two-horse  mower  4|  feet  wide  are 
considered  most  suitable.  The  most  popular  self -rake 
reaper  is  5  feet  wide  ;  the  most  popular  binder,  6  feet. 
The  use  of  the  right-hand  binder  is  practically  universal. 
Complaint  has  been  made  that  the  forecarriage  fitted 
to  binders  of  the  American  type  has  a  tendency  to  fall 
over  to  one  side. 

The  thrashing  machines  used  in  Western  Siberia  are 
operated  on  the  English  principle.  The  four-horse  and 
eight-horse  power  sizes  are  the  most  in  demand.  Power 
thrashing  outfits  have  been  successfully  imported  from 
Great  Britain  and  Germany  in  competition  with  the  local 
make.  Ten-horse  power  thrashing  sets  have  the  largest 
sale.  The  prevalence  of  alkahne  water  in  Western  Siberia, 
however,  is  against  the  steam-driven  engine.  The  most 
available  fuel  for  power  purposes  is  either  kerosene  or 
crude  oil,  naphtha  being  difficult  to  obtain.  There  is, 
however,  a  growing  demand  for  kerosene  or  crude  oil 
vertical  motoi-s  of  about  the  fourteen  to  sixteen  horse- 


SIBERIA  151 

power  size,  sufficient  for  use  with  thrashers  or  small  flour 
mills  and  for  irrigation  purposes. 

The  demand  for  small  tractors.  There  is  an  opening  for 
a  small  tractor  burning  kerosene  or  crude  oil.  A  petroleum 
tractor  •  of  fourteen  to  twenty  horse-power  is  required 
which  would  be  capable  of  pulling  a  three  or  four  furrow 
gang  plough.  The  tractor  should  be  relatively  simple  in 
construction  and  easy  to  operate.  The  platform  and  con- 
trol levers  should  be  so  arranged  that  only  one  operator 
will  be  required  for  both  the  tractor  and  the  ploughs. 

The  rapid  rise  of  the  dairying  industry  of  Western 
Siberia  has  caused  a  great  demand  for  dairying  appliances. 
Churns,  butter  presses  and  other  accessories  are  mostly 
of  Russian  manufacture,  but  cream  separators  have 
been  supplied  chiefly  by  Sweden  and  Germany.  The 
separators  sold  range  from  the  5-vedro  (16.2  gallons)  size 
up.  There  is  also  a  Umited  demand  for  power  separators, 
the  largest  being  585  gallons. 

The  Canadian  Government,  more  ahve  to  the  situation 
than  our  own  Board  of  Trade,  has  a  special  Trade  Com- 
mission in  Russia  who  has  made  a  special  investigation 
into  the  probable  future  development  of  Western  Siberia, 
from  which  the  following  summary  has  been  made  : 

From  the  point  of  view  of  trade  development,  Siberia 
may  be  divided  into  three  separate  districts  or  "  zones." 
In  Western  Siberia,  which  comprises  the  territory  stretch- 
ing from  the  Ural  Mountains  to  east  of  the  Yenisei  River, 
trade  is  more  or  less  subject  to  the  influences  of  European 
Russia  and,  in  normal  times,  foreign  supplies  are  imported 
either  across  the  European  frontier  or  through  the  Baltic 
and  Black  Sea  ports.  The  central  zone  of  Siberia  consists 
of  the  territory  around  Irkutsk  and  is  chiefly  important 
from  the  point  of  view  of  mineral  development.  The 
distance  from  the  consuming  markets  limits  the  produc- 
tion of  agricultural  and  other  products,  and  this  district 


152  COMMERCIAL  RUSSIA 

does  not  offer  as  good  prospects  for  future  trade  as  other 
sections  of  the  country.  The  eastern  part  of  Asiatic 
Russia  beyond  Lake  Baikal  is  generally  known  as  the 
Russian  Far  East,  and  the  trade  in  this  territory  is 
specialised  business  distinct  from  that  with  the  rest  of 
Siberia.  The  bulk  of  the  supphes  for  this  region  are 
imported  through  Vladivostok. 

Western  Siberia  is  the  most  important  section  of  the 
country  agriculturally  and  is  the  most  thickly  settled, 
having  a  population  of  about  9,000,000  persons  out  of  a 
total  for  the  whole  of  Siberia  of  about  11,500,000  persons. 
In  the  north  the  plains  of  Western  Siberia  are  covered 
with  a  forest  belt,  rich  in  unexploited  timber  and  fur- 
bearing  animals.  South  of  this  forest  zone  there  extends 
between  latitudes  55  and  57  the  black-earth  region  of 
Siberia,  the  section  mo^  attractive  for  agricultural 
colonisation.  In  the  foothills  of  the  Altai  and  at  higher 
altitudes,  there  are  also  excellent  agricultural  lands  and 
pastures,  including  an  area  of  black-earth  belt  which  is 
probably  the  richest  in  all  Siberia.  It  has  been  estimated 
that  the  black-earth  zone  of  the  Western  Siberian  plains 
and  the  foothills  of  the  Altai  farther  east  could,  if  properly 
cultivated,  support  five  times  the  present  population  of 
Euiopean  Russia. 

During  the  ten  years  preceding  the  outbreak  of  the 
war,  the  emigration  to  Siberia  from  European  Russia  was 
proceeding  at  the  rate  of  nearly  300,000  persons  per 
aimum.  The  result  was  that  the  surplus  of  agricultural 
products  available  for  distribution  on  the  European 
markets  and  expoit  gieatly  increased,  and  before  the  war 
had  already  attained  large  dimensions. 

Lack  of  tramport  facilities.  One  of  the  chief  obstacles 
to  the  further  economic  progress  of  Siberia  has  been  the 
gieat  distance  from  the  markets  of  consumption.  The 
only  articles  which  it  has  hitherto  been  found  possible 


SIBEEIA  153 

to  ship  abroad  in  considerable  quantities  have  been 
high-priced  products  of  small  bulk,  such  as  butter.  In 
some  years  great  difficulties  have  been  experienced  in 
marketing  the  grain  grown  in  excess  of  local  require- 
ments. The  result  has  been  over-production  in  some 
districts  with  prices  below  actual  cost.  It  would  appear, 
therefore,  that  Western  Siberia  has  reached  the  limit  of  its 
development  under  existing  conditions  and  that  further 
organisation  and  transport  facihties  are  required  before 
the  natural  resources  of  the  country  can  be  properly  utihsed. 

Western  Siberia,  besides  its  resources  in  agriculture, 
has  also  rich  deposits  of  gold,  silver,  copper,  iron  and 
coal.  Additional  railway  facilities  are  required  in  order 
to  render  possible  the  further  profitable  exploitation 
of  these  mineral  areas. 

New  railways  opened.  The  need  for  further  transport 
facilities  was  realised  even  prior  to  the  war.  The  hne 
from  Tiumen  to  Omsk  was  constructed,  thus  providing 
an  alternative  route  between  European  Kussia  and  the 
Irtish  Eiver.  The  double  tracking  of  the  Trans-Siberian 
line  was  undertaken  and  has  been  completed  from  Omsk  to 
the  junction  with  the  Amur  railway.  With  the  construc- 
tion of  the  latter  there  are  now  two  lines  of  rail  from  the 
Ural  Mountains  to  the  Pacific  Ocean.  During  the  present 
year  three  new  important  railway  Hnes  have  been  opened 
for  traffic,  while  the  construction  of  a  fourth  wiU  soon 
be  completed,  as  follows  : 

The  Altai  Railway.  Important  developments  are  ex- 
pected to  result  from  the  construction  of  this  railway, 
since  it  serves  extremely  fertile  agricultural  districts  and 
also  connects  rich  mineral  areas  with  the  main  Siberian 
railway.  The  line  is  514  miles  in  length  and  runs  south 
from  Novo-Nikolaievsk  to  Semipalatinsk.  From  Barnaul 
a  branch  has  been  constructed  to  Biisk.  In  addition 
to   opening   up   rich   areas   to   settlement,   this   railway 


164  COMMERCIAL  RUSSIA 

should  bring  about  a  new  era  for  the  Altai  mining  industry, 
as  it  will  now  be  possible  to  transport  the  machinery 
required  for  the  more  extensive  working  of  reef-gold  and 
for  other  mineral  developments. 

Tlie  Kulundin  Railway.  This  Une,  which  has  recently 
been  completed,  will  serve  the  wide  extent  of  territory 
between  the  Altai  railway  and  the  Irtish  River.  From 
Tatarskoi,  a  point  on  the  Siberian  railway  some  120  miles 
east  of  Omsk,  the  hue  runs  south  to  Slavgorod,  a  distance 
of  about  200  miles. 

Tlie  Kolchugino  Railway.  The  importance  of  this 
railway  Hes  in  the  fact  that  it  will  tap  the  Kuznetsk 
coalfields,  which  surpass  all  other  Russian  coal  deposits 
in  magnitude  and  variety  of  contents.  The  region  is  also 
rich  in  other  minerals.  The  section  from  the  Siberian 
railway  to  Kolchugino  (124  miles)  has  been  completed. 
The  right  to  build  the  lines  Kolchugino-Kuznetsk,  Kuz- 
netsk-Telebesse  and  Kuznetsk-Barnaul,  of  a  total  length 
of  over  200  miles,  has  been  granted.  The  necessary 
authority  for  establishing  a  large  metallurgical  and  coke 
factory  near  Kuznetsk  has  also  been  granted.  This 
district,  therefore,  promises  to  become  in  the  near  future 
a  new  metallurgical  centre. 

TJie  Minushish  Railway.  This  railway  runs  south 
from  Achinsk  on  the  main  Siberian  Hne  to  Minusinsk  on 
the  upper  Yenisei  River,  a  distance  of  276  miles.  The 
IVIinusinsk  district  is  another  of  those  agricultural  areas 
of  Siberia  with  a  fertile  soil  and  a  sheltered  location, 
which  have  been  awaiting  the  advent  of  railway  com- 
munication in  order  to  be  properly  developed.  This 
district  has  also  valuable  deposits  of  coal  and  iron. 

Programme  of  future  railway  construction.  The  Govern- 
ment has  decided  to  make  ample  provision  for  the  construc- 
tion in  the  immediate  future  of  those  railways  which  seem 
to  be  the  most  uigently  required  for  the  utilisation  of  the 


SIBERIA  156 

resources  of  the  empire.  In  this  connection  there  has 
been  published  in  the  press  a  list  of  the  proposed  railways 
which  are  to  be  built  during  the  next  ten  years.  The 
construction  of  these  railways  has  been  sanctioned  by 
the  Commission  on  New  Railways  of  the  Ministry  of 
Finance  and  by  the  other  ministries  concerned.  The 
programme  is  an  extensive  one,  and  includes  65  new 
railways  of  a  total  length  of  over  20,000  miles.  The  follow- 
ing particulars  are  given  of  the  railways  comprising  that  part 
of  the  proposed  programme  which  relates  to  Western  Siberia. 

South  Siberian  Railway.  This  railway  will  run  from 
Orsk  in  the  Orenburg  province  of  European  Russia  across 
the  Kirghiz  Steppes  through  Akmolinsk  and,  crossing  the 
Irtish  River  at  Pavlodar,  will  continue  on  through  Slav- 
gorod,  the  present  terminus  of  the  Kulundin  railway,  to 
Barnaul,  where  it  will  connect  with  the  Altai  railway  and 
the  Kuznetsk-Barnaul  branch  of  the  Kolchugino  railway. 
When  this  line  has  been  built  there  will  be  another  trunk 
hne  across  the  plains  of  Western  Siberia,  about  220  miles 
to  the  south  of  the  present  railway,  all  the  way  from  the 
existing  railway  system  of  European  Russia  to  Kuznetsk. 
It  is  the  intention  to  extend  this  trunk  line  on  to  Minu- 
sinsk on  the  upper  Yenisei  River.  The  new  railway  will 
be  over  1,000  miles  in  length,  and  will  provide  an  outlet 
for  the  products  of  the  Kirghiz  Steppes  and  the  rich 
agricultural  districts  along  the  upper  Irtish  and  Obi 
Rivers  and  in  the  foothills  of  the  Altai.  It  should  also 
greatly  stimulate  the  profitable  exploitation  of  the  mineral 
wealth  of  the  Semipalatinsk  and  Akmolinsk  districts, 
which  are  especially  rich  in  copper,  lead  and  zinc  ores. 

Akmolinsk-Spassky  Copper  Mines  Railway.  This  rail- 
way will  connect  the  proposed  South  Siberian  trunk  line 
with  the  mineral  areas  to  the  south  in  the  vicinity  of  the 
Spassky  copper  mines. 

Slavgorod-Semipalatinsh-V erny  Railway.     This  impor- 


156  COMMERCIAL  RUSSIA 

tant  railway,  which  will  connect  Western  Siberia  with 
Central  Asia,  is  to  run  south  from  Slavgorod,  the  terminus 
of  the  Kulundin  railway,  to  Semipalatinsk  and  thence, 
skirting  the  foothiUs  of  the  Altai,  to  Verny,  the  centre 
of  a  very  rich  district  south  of  Lake  Balkhash.  The  total 
length  of  this  Hne  wiU  be  nearly  1,000  miles.  A  branch 
is  to  be  constructed  from  a  point  north  of  Verny  through 
a  depression  in  the  Altai  mountains  to  Kulkja  on  the 
other  side  of  the  MongoHan  border.  Verny  promises  to 
be  the  trade  centre  of  an  extensive  district  capable  of 
supporting  a  large  population,  and  also  an  important 
emporium  for  the  trade  with  Inner  MongoHa.  A  railway 
is  already  being  constructed  to  Verny  from  a  point  on  the 
Tashkend  railway  in  Russian  Turkestan.  The  connecting 
of  this  territory  with  the  railway  system  of  Western 
Siberia  should,  therefore,  render  possible  the  exchange 
of  Siberian  grain  and  other  products  for  the  semi-tropical 
productions  of  Russian  Turkestan  and  Central  Asia. 

Petropavlovsk-KoJcchetav  Railway.  This  hne  mil  run 
south  from  the  present  Trans-Siberian  railway  to  Kokche- 
tav,  a  distance  of  about  100  miles,  and  will  serve  the  Steppe 
countiy  between  the  Ishim  and  Irtish  Rivers. 

Kolchugino-Kuznetsk-Telebesse  and  Kuznetsk- Barnaul 
Railways.  These  railways  are  extensions  of  the  Kolchugino 
railway. 

Ekaterinburg-Sinarskaya  and  Sliadrinsk- Kurgan  Rail- 
ways. The  construction  of  these  two  railways  will  afford 
direct  comnmnication  between  Ekaterinburg  and  Kurgan, 
and  should  materially  assist  towards  the  further  develop- 
ment of  the  Kurgan  district. 

Achinsk- Yeniseisk  Railway.  This  railway  is  to  run 
from  the  Trans-Siberian  railway  north  to  Yeniseisk,  a 
point  on  the  Yenisei  River  some  230  miles  below  Kras- 
noyarsk. It  wiU  serve  the  lower  Yenisei  valley  and  the 
agiicultural  districts  north  of  Achinsk. 


SIBEKIA  157 

Lena  Railway.  A  railway  is  to  be  constructed  from 
the  main  Siberian  line  to  the  headquarters  of  navigation 
on  the  Lena  River.  Railway  connection  will  thus  be 
afforded  with  the  goldfields  of  the  Lena  valley. 

It  is  proposed  to  construct  the  above-mentioned  lines 
as  nearly  as  possible  within  the  five-year  period  from  1917 
to  1922,  and  at  any  rate  before  the  year  1927.  Other  rail- 
ways projected  include  a  North  Siberian  trunk  line  from 
Tiumen  to  Tomsk,  crossing  the  Irtish  River  at  Tara  ;  a 
Hne  north  of  Tara  from  the  existing  railway  lines,  and  a 
railway  from  Obdorsk  on  the  lower  reaches  of  the  River 
Obi  to  a  port  on  the  Arctic  Ocean,  thereby  providing  an 
ice-free  summer  outlet  by  way  of  the  northern  route  for 
the  products  of  the  Siberian  plains. 

Supplies  required  for  railway  construction.  Some  of  the 
railway  lines  included  in  the  programme  outlined  above 
are  to  be  built  by  the  Government,  while  concessions  are 
to  be  granted  for  the  construction  of  others.  These  are 
details  which  have  yet  to  be  fuUy  worked  out.  By  law, 
the  parties  constructing  these  Hues  will  be  required  to 
purchase  their  suppHes  and  equipment  as  far  as  possible 
within  the  Russian  Empire.  It  is  evident,  however,  that 
it  will  be  impossible  for  Russian  firms  to  supply  all  of  the 
materials  and  equipment  necessary  for  the  building  of 
these  railways,  especially  when  the  ambitious  railway 
construction  programme  for  European  Russia  is  also  taken 
into  consideration.  The  importation  from  foreign  coun- 
tries of  a  large  amount  of  the  materials  and  equipment 
required  will  therefore  probably  be  necessary. 

Additional  cold  storage  facilities.  Supplementing  the 
decision  of  the  Government  to  prosecute  vigorously  the 
construction  of  the  railways  most  urgently  required  for 
the  development  of  Western  Siberia,  there  has  been  a 
realisation  of  the  need  for  better  organisation  in  the 
bandhng  of  the  products  of  the  country.    This  is  to  find 


158  COMMERCIAL  RUSSIA 

expression  in  two  directions,  viz.  the  provision  of  addi- 
tional cold  storage  plant  and  of  grain  elevators. 

Refi'igeration  is  bound  to  play  an  increasingly  im- 
portant part  in  the  utilisation  of  the  resources  of  Siberia. 
For  transporting  Siberian  butter  some  1300  ice  cars  have 
been  required  as  well  as  ice-house  reservoirs  along  the 
line  of  the  railway.  A  large  refrigerating  plant  has  been 
constructed  by  a  private  company  at  Kurgan. 

At  a  meeting  of  the  Commission  on  Cold  Storage  at 
Ekaterinburg  it  was  decided  to  submit  to  the  Duma  a 
plan  for  the  establishment  of  cold  storage  plant  at  central 
points  throughout  Western  Siberia,  and  for  the  provision 
of  more  refrigerating  cars  on  the  railways.  The  details  of 
^  this  plan  have  yet  to  be  worked  out,  but  it  may  be  taken  for 
granted  that  important  developments  regarding  additional 
cold  storage  facihties  will  take  place  in  the  near  future. 

Grain  elevators.  In  order  better  to  organise  the  move- 
ment of  grain  crops  and  at  the  same  time  to  afford  peasants 
some  assistance  in  warehousing  and  disposing  of  grain, 
the  Russian  Government  commenced  before  the  war  to 
build  a  series  of  eighty-four  grain  elevators  in  the  south- 
east provinces  of  European  Russia.  It  has  now  been 
decided  to  extend  this  scheme  to  other  parts  of  the  empire, 
including  Western  Siberia.  Already  several  points  have 
been  decided  upon  as  suitable  centres  for  the  location  of 
grain  elevators,  and  the  next  few  years  should  see  further 
extensions  along  the  lines  indicated.  Concessions  will 
probably  be  granted  for  the  building  of  these  elevators 
by  the  Imperial  State  Bank,  which  is  responsible  for  the 
carrpng  out  of  the  details  of  the  scheme. 

Possibilities  for  future  trade.  The  provision  of  adequate 
railway,  cold  storage  and  grain  elevator  facilities  as  out- 
Uned  above  should  bring  about  a  new  era  in  Western 
Siberia.  More  advanced  methods  will  be  introduced  for 
the  exploitation  of  the  mineral,  forest  and  fishery  resources 


SIBERIA  169 

of  the  country.  Thus  it  is  expected  that  the  yield  of  gold 
from  Siberia  will  soon  be  doubled,  while  it  has  been  esti-  , 
mated  that  during  each  of  the  first  seven  years  as  much  as  / 
960,000  tons  of  iron  could  be  produced.  With  this  develop- 
ment there  will  undoubtedly  be  established  in  time  special- 
ised industries  catering  for  the  growing  demand  of  the 
local  population  for  manufactured  goods.  The  equip- 
ment for  these  factories  will  in  most  cases  have  to  be 
imported  from  foreign  countries.  Developments  may 
also  be  expected  to  take  place  in  the  export  of  agricul- 
tural products  which  have  hitherto  been  shipped  in 
limited  quantities  or  not  at  all.  This,  together  with  the 
opening  up  of  new  areas  for  settlement,  should  result  in 
the  renewal  on  an  even  larger  scale  of  the  emigration 
from  European  Russia  which  has  been  interrupted  by 
the  war.  An  increase  in  the  agricultural  population  of 
Siberia  may,  therefore,  be  anticipated,  in  addition  to  a 
further  growth  in  the  population  of  the  towns  and  the 
mining  districts.  Moreover,  the  purchasing  power  of  the 
individual  peasant  should  also  be  greater  after  the  war. 
Owing  to  the  opportunities  afforded  by  the  cultivation  of 
a  new  land,  the  Siberian  peasants  are  relatively  more 
progressive  and  manifest  a  greater  desire  to  improve  their 
conditions  of  living  than  the  peasantry  of  European 
Russia.  In  this  connection  it  is  difficult  to  overestimate 
the  influence  of  the  vodka  prohibition  on  the  welfare  of 
the  agricultural  population.  Firms  distributing  articles 
formerly  considered  luxuries  by  the  peasants  already 
report  great  increases  in  their  sales,  and  attribute  this 
to  the  increase  of  individual  savings  as  a  result  of  the 
prohibition  of  spirits.  Western  Siberia  should,  therefore, 
offer  a  wide  and  growing  market  for  all  sorts  of  manu- 
tactured  articles,  which,  since  the  country  is  practically 
without  manufacturing  industries,  must  in  most  cases 
be  imported  from  abroad, 


160  COMMEECIAL  EUSSIA 

Present  trade  situaticm.  The  above  information  would 
seem  to  warrant  careful  study  of  the  openings  in  Western 
Siberia  for  the  sale  of  goods.  Before  the  war  the  com- 
merce of  Siberia  was,  in  large  measure,  dominated  by 
German  influences  and,  with  the  possible  exception  of 
agricultural  machinery,  German  goods  constituted  the 
bulk  of  the  suppUes  entering  the  territory.  The  question 
of  estabhshing  connections  with  alternative  sources  of 
supply  is,  therefore,  occupying  the  attention  of  importers. 
Owing  to  the  difficulties  of  transport,  stocks  of  all  kinds 
of  imported  goods  are  almost  depleted  and  prices  in  every 
case  are  very  high.  A  considerable  amount  of  Japanese 
and  Swedish  products  is  being  shipped  to  Siberia  to  take 
advantage  of  this  situation.  These  countries  are  making 
every  effort  to  get  their  goods  known  and  connections 
estabhshed  so  thait  their  firms  will  be  in  a  strong  position 
when  normal  trade  is  once  more  resumed.  The  execution 
of  a  few  trial  orders — not  necessarily  for  large  amounts — 
under  the  present  difficult  conditions  would  go  far  towards 
securing  a  permanent  connection  in  the  market. 

A  large  share  of  the  trade  of  Western  Siberia  is  con- 
trolled by  European  Russian  houses,  who  purchase  in 
Moscow  the  foreign  supplies  required  for  their  branches 
in  the  various  centres.  There  is  a  noticeable  tendency, 
however,  for  the  estabhshment  of  local  independent 
firms  ordering  their  Requirements  of  foreign  goods  direct. 
For  most  fines  of  trade  foreign  firms  are  therefore  advised 
to  establish  an  agency  for  this  territory  apart  from  their 
representation  for  European  Russia.  For  this  purpose 
there  are  now  available  many  of  the  former  agents  of 
German  houses  who  are  anxious  to  secure  the  representa- 
tion of  manufacturers  able  to  supply  articles  similar  to 
those  hitherto  imported  from  enemy  countries. 


XVI 


/ 


AGRICULTURAL    MACHINERY, 
CHEMICALS,  &  GENERAL  MERCHANDISE 

Scarcity  of  British  goods— Pianos— Stationery  and  books— Cutlery— Carpets 
— Food  products— Medicines — Tobacco — Chemists'  supplies— The  Chem- 
ical industry — Cement— Beeswax— Agricultural  machinery — No  tariff  on 
agricultural  machinery — Machinery — Glass  and  optical  instruments — 
Saws — Furniture — Tools — Firebricks— Clothing— Cycles— Photographic 
supplies — Paints  and  colours — China-ware— Castings — Jewellery — Um- 
brellas— Lace  and  embroidery — Perfumery. 

IN  one  of  the  bigger  Russian  cities  there  is  a  large  shop 
where  almost  every  kind  of  article  can  be  purchased, 
except  food  and  clothing.  It  is  not  a  department  store, 
but  a  mixture  of  ironmongery,  toys,  cutlery,  glass,  china, 
stationery,  fancy  goods,  haberdashery  and,  in  fact,  almost 
every  conceivable  article  of  these  kinds.  I  was  surprised 
to  find  very  Httle  British  goods  in  the  shop.  The  safety 
razors,  inkstands,  ornaments,  fountain-pens,  bags,  smokers' 
sets,  were  nearly  all  German.  The  proprietor  said,  "  I 
want  to  buy  EngUsh  goods,  but  nobody  ever  comes  here 
with  any.  There  isn't  a  novelty  brought  out  but  what  I 
have  a  good  sale  for,  but  it  is  only  on  the  rare  occasions 
that  I  am  able  to  go  to  England  that  I  see  or  hear  of  any- 
thing made  in  that  country.  Most  of  what  few  EngUsh 
goods  I  have  been  able  to  purchase  comes  through  German 
agents." 

In  Moscow,  in  the  big  department  store  of  Muir  and 
Merrilees,  referred  to  elsewhere,  with  a  turnover  running 
into  millions  a  year,  the  large  percentage  of  goods  were 
German,  although  the  firm  is  of  Scotch  origin,  and  its 

M  161 


162  COMMEECIAL  RUSSIA 

present  directors  are  Englishmen.  They  have  a  buying 
branch  in  this  country,  but  Mr.  Wm.  Cazelet,  the  manag- 
ing director,  told  me  that  they  could  handle  very  much 
more  British  manufactures  if  English  firms  made  more 
intelligent  efforts  to  get  business  and  were  properly  repre- 
sented. To  enumerate  the  articles  that  can  be  sold  in 
Russia  is  almost  to  exhaust  the  vocabulary  of  trade 
names.  Every  consular  report  gives  them  by  the  score. 
No  field  is  freer  from  competition  or  offers  such  abundant 
opportunity  for  business  as  what,  for  want  of  a  better 
term,  may  be  called  general  merchandise.  A  few  manufac- 
turers have  made  some  little  effort  to  do  business,  but  it 
has  been  confined  to  the  larger  cities  and  generally  with- 
out any  system.  The  towns  enumerated  on  another  page 
all  have  many  excellent  shops,  and  if  it  is  not  feasible  to 
call  upon  them,  all  the  ground  can  be  covered  by  reliable 
agents  in  different  districts,  though  these  will  necessarily  be 
a  different  class  than  the  larger  firms  handling  machinery, 
etc.  Probably  a  good  plan  would  be  to  send  out  small  con- 
signments to  responsible  agents,  who  could  readily  sell  them 
for  cash,  and  in  this  way  find  out  the  most  saleable  lines. 
The  piano  trade  is  one  in  which  Russia  offers  splendid 
opportunities.  The  statistics  here  given  are  very  illu- 
minating. 


Imports  in  1913 

Grand  Pianos 

)tal 

From 

>> 

of  which 
L  Germany 
Austria 
U.  Kingdom , 

.  1,002  Pianos,  value  £86,991 

.     942      „ 

.       41      „ 

9      „ 

Total 

Fron 
»» 
>> 

[   . 

of  which 
1  Germany 

Austria 

U.  Kingdom 

Upright  Pianos 
.  4,679  Pianos,  value  £209,039 

.  4,127      „ 
.     504      „ 
.       22      „ 

AGEICULTUKAL  MACHINEEY,  CHEMICALS    163 

Practically  the  whole  of  this  trade  will  come  to  England 
or  go  to  America,  and  it  will  depend  in  large  measure 
upon  which  country  gets  its  connections  first  established. 
As  indicating  the  prejudice  against  Germany,  it  may  be 
stated  that  during  the  early  days  of  the  war,  the  premises 
of  the  leading  piano  dealer  in  Moscow  were  completely 
gutted,  and  a  bonfire  of  the  German  pianos  made  in  the 
street. 

There  is  not  much  demand  for  the  cheaper  grades  of 
paper  such  as  used  in  newspapers,  but  there  will  be  for 
all  the  better  qualities  of  writing  and  book  papers.  The 
study  of  the  English  language  which  is  now  going  on  in 
Eussia  will  afford  opportunities  for  the  sale  of  EngHsh 
books  and  publications  to  an  extent  hitherto  unknown. 
More  particularly  will  technical  and  text -books  be 
required,  the  Eussians  having  to  depend  heretofore  on 
German  publications. 

The  Eussian,  especially  of  the  better  class,  seldom 
shaves  himself,  and  the  demand  for  razors  has  therefore 
been  limited.  He  is,  however,  taking  rapidly  to  the 
safety  razor,  and  a  market  has  already  been  established 
in  this  line,  which  has  excellent  prospects.  The  cheaper 
grades  of  cutlery,  knives,  forks,  spoons,  etc.,  are  exten- 
sively manufactured  in  the  country,  but  there  are  good 
openings  for  the  better  grades.  Lead  pencils  and  pens 
are  almost  entirely  imported.  Germany  has  had  the  trade 
in  the  former,  but  British  pens  are  well  known  in  Eussia. 
A  peculiar  feature  is  the  demand  for  what  is  known  as 
No.  86.  Some  manufacturers  stamp  them  98,  which  gives 
the  same  impression  when  reversed. 

Carpets  have  comparatively  little  sale  in  Eussia,  especi- 
ally those,  sold  by  the  yard.  Nearly  all  used  in  Eussia  are 
rugs  and  squares,  and  most  of  these  are  imported  from 
Persia  and  the  East,  the  Eussian  tariff,  even  with  the 
most  favoured  nation  clause,  expressly  providing  that 


164  COMMEECIAL  EUSSIA 

Asia  is  excepted.    There  is,  however,  some  Httle  demand 
in  the  western  provinces  where  European  customs  prevail. 

Office  appliances  and  fihng  systems  other  than  ordinary- 
furniture  should  have  a  good  chance  in  Russia,  but  will 
require  education.  A  good  branch  office  in  the  three 
principal  cities,  in  charge  of  a  capable  man,  should  do 
good. 

Scientific  instruments,  optical  supplies  and  photo- 
graphic material  are  in  demand  all  over  Russia,  and  the 
supply  is  not  equal  to  it. 

In  food  products  there  is  not  much  demand  except  for 
the  higher  qualities.  Excellent  biscuits,  for  instance, 
are  made  in  Russia,  and  the  duty  on  those  imported  is 
almost  prohibitive.  Nevertheless,  the  richer  classes  will 
pay  almost  any  price  for  what  they  want,  and  a  fair 
amount  of  Enghsh  biscuits  can  find  a  market.  The 
Russian  has  a  sweet  tooth,  and  I  was  somewhat  surprised 
at  the  absence  of  jams,  jellies,  marmalade,  etc.,  for  which 
I  should  think  there  would  be  a  demand,  especially  as  it 
is  becoming  the  vogue  to  have  Enghsh  things  on  the  table. 

Pharmaceutical  preparations  and  patent  medicines 
should  have  a  good  opportunity.  One  or  two  of  the  latter 
of  domestic  make  have  an  enormous  sale.  There  are 
many  difficulties  attached  to'  their  sale,  and  it  is  advisable 
that  the  whole  business  should  be  placed  in  the  hands  of 
a  responsible  Russian.  Sanatogen  had  a  good  sale  before 
the  war,  and  its  place  is  already  being  taken  by  the  British 
Sanagen. 

There  is  very  Httle  demand  for  Enghsh  tobacco  or  . 
cigarettes,  and  it  is  chiefly  confined  to  the  British  colonies 
in  the  larger  towns.  Even  these  soon  get  out  of  the  habit 
of  smoking  pipes  and  get  accustomed  to  the  Russian 
cigarette.  There  is,  however,  a  good  field  for  Havana  cigars. 
Paints,  varnishes,  enamels,  etc.,  are  required  more 
especially  in  the  better  qualities,  and  the  dry  kinds  of 


AGRICULTUKAL  MACHINERY,  CHEMICALS    165 

paints.  Most  of  the  houses  being  built  of  wood  makes 
the  use  of  paint  very  general. 

Among  sporting  requisites,  tennis  bats,  balls,  etc.,  are 
chiefly  required.  Golf  is  practically  unknown  in  Russia. 
Revolvers,  guns  and  shooting  paraphernalia  are  in  good 
demand. 

In  all  kinds  of  haberdashery  there  is  a  good  field  ;  such 
things  as  braces,  garters,  buckles,  shoelaces,  cheap  jewel- 
lery having  hitherto  been  largely  supplied  by  Germany, 
though  Japan  has  taken  advantage  of  the  opportunity  to 
make  considerable  headway  in  these  lines  during  the  war. 

The  chemists'  shops  are  considerable  rivals  to  the 
doctors  themselves.  Not  only  do  they  put  up  prescrip- 
tions, but  it  is  also  quite  an  ordinary  circumstance  to 
prescribe.  Little  or  no  business  is  done  in  perfumery 
and  fancy  goods,  and  proprietary  preparations  are  com- 
paratively rare.  The  chemist  establishment  of  Verreins 
at  Moscow  is  probably  the  largest  of  the  kind  in  the  world. 
Scores  of  qualified  chemists  in  white  smocks  are  in  attend- 
ance in  a  dozen  or  more  rooms,  and  almost  every  chemical 
and  drug  known  to  science  can  be  purchased  here.  The 
firm  employs  four  hundred  and  fifty  workpeople  and 
two  hundred  and  fifty  qualified  chemists,  was  founded 
about  two  hundred  years  ago,  and  its  average  output  of 
prescriptions  alone  exceeds  half  a  milhon.  They  have 
also  a  number  of  proprietary  articles  of  their  own  make, 
and  deal  in  those  of  other  countries,  insisting,  however, 
when  possible,  on  their  own  labels.  Chemists'  shops  in 
Russia  do  not  make  any  window  display. 

The  war  has  compelled  Russia  to  develop  her  own 
chemical  industry,  and  a  certain  number  of  works  have 
already  been  erected,  while  many  are  projected.  A  super- 
phosphate factory  has  been  erected  on  the  railway  between 
the  stations  Molovilich-Levshino,  by  the  Zemstvo  of  Perm 
and  Viatka.    The  capital  invested  in  this  undertaking  is 


166  COMMERCIAL  RUSSIA 

1,000,000  roubles.  A  celluloid  factory  has  been  erected 
at  Kalino  on  the  Perm  railway.  The  Nijegorodski  Zemstvo 
has  built  a  formalin  factory  at  Vetluga.  A  technical 
laboratory  for  the  production  of  lanoline,  naphthaline, 
etc.,  has  been  built  in  Rostov. 

A  large  company  has  been  formed  in  Moscow,  with  a 
capital  of  4,000,000  roubles,  for  the  erection  of  a  coke- 
benzol  factory.  In  Tomsk  a  large  chemical  factory  is 
projected  for  the  production  of  medicaments.  A  factory 
producing  tanning  materials  in  Kiev,  having  been  seques- 
tered, is  now  being  administered  by  the  Zemski  Soyuz 
(i.e.  Union  of  Zemstvos),  and  the  output  of  tanning 
materials  has  been  largely  increased.  Another  tanning 
material  factory  is  projected  at  Maikop  in  the  Caucasus. 

Prior  to  the  war,  the  production  of  fertilisers  in  Russia 
was  largely  dependent  on  raw  materials  supplied  by 
Germany.  A  great  shortage  of  machinery  for  the  use  of 
artificial  manure  factories  is  badly  felt,  and  this  hinders 
the  more  rapid  development  of  the  industry.  The  manu- 
facture of  sulphuric  acid  appears  to  be  progressing  fairly 
well,  several  new  works  having  been  erected  in  the  Volga 
region,  in  the  Donetz  basin,  in  the  Caucasus  and  in  the 
Urals. 

The  supply  of  Russian  pyrites  is  increasing,  but  other 
raw  material  used  by  sulphuric  acid  works  are  in  short 
supply.  New  saltpetre  deposits  have  been  discovered 
in  the  Altai  districts  (Siberia)  and  are  being  studied  with 
a  view  to  their  exploitation.  New  deposits  of  pyrites 
have  been  discovered  near  the  railway  station  Kinel  in 
the  Boguruslan  district,  and  near  Samara  there  are  said 
to  be  deposits  of  sulphur. 

About  two  years  ago  a  gioup  of  representative  men  in 
the  Russian  cement  trade  drew  up  the  statutes  of  a  pro- 
posed association  for  the  development  of  the  Portland 
cement    industry.      These    statutes    have    now    received 


AGRICULTURAL  MACHINERY,  CHEMICALS    167 

Government  approval.  The  industry  has  grown  enor- 
mously in  Russia  of  late  years,  but  largely  under  foreign 
control,  emancipation  from  which  is  one  of  the  aims  of  the 
new  combination.  Hitherto  all  the  working  mechanism 
and  the  machinery  oils  for  the  Russian  cement  works  were 
imported.  The  promoters  of  the  new  concern  protest 
that  the  whole  equipment  of  such  works,  and  the  lubricat- 
ing oil  too,  can  be  furnished  by  Russia,  and  every  en- 
couragement will  now  be  given  to  the  home  producer.  The 
demand  for  the  mechanical  equipment  of  Russia's  Portland 
cement  works  is  expected  to  be  colossal  when  the  war  closes, 
for  the  constructional  work  to  be  done  is  incalculable. 

It  is  clear  to  students  of  Russian  industries  that  the 
country  will  be  capable  one  day  of  supplying  its  own 
Portland  cement  works  machinery.  But  much  more  will 
require  reinforcing  after  the  war  than  cement  works. 
The  existing  Russian  machine  shops  will  be  altogether 
incapable  of  undertaking  the  work  that  will  be  offered. 
The  foreign  machine  builder  will  undoubtedly  be  called  in 
to  lend  a  hand. 

Beeswax  is  important  in  the  manufacture  of  church 
candles,  and  in  war-time  the  demands  have  greatly  in- 
creased. 

The  trade  in  wax  is  a  staple  Russian  trade.  In  times 
past  Russia  has  even  exported  large  quantities,  when 
bee-keeping  was  extensive  and  profitable.  The  Russkaya 
Praeda  points  out  that  the  princes  used  to  accept  honey 
in  heu  of  taxes.  But  now  Russia  is  compelled  to  purchase 
abroad. 

In  peace-time  the  church  candle  factories  used  to  manu- 
facture nearly  ten  thousand  tons  of  candles  yearly.  The 
Russian  wax  supply,  however,  does  not  exceed  seven 
thousand  tons,  and  it  was  therefore  necessary  to  buy 
abroad  at  least  three  thousand  tons. 

Before  the  war  foreign  wax  for  the  Russian  Church 


168  COMMERCIAL  RUSSIA 

was  supplied  by  a  German  firm  (Hamburg),  the  so-called 
Luneburg  Wax  Bleaching  Company.  Its  competitors  in 
Russia  were  the  firms  of  Weltz  in  Petrograd  and  KapteHn 
in  Moscow;  but  to  keep  the  prices  up  the  three  firms 
formed  a  syndicate. 

The  British  Vice-Consul  at  Berdiansk  writes  that  the 
manufacture  of  agricultural  machinery  and  implements 
was  a  staple  industry  in  that  town  and  its  neighbourhood 
up  to  the  outbreak  of  the  war,  but  that  it  has  now  tem- 
porarily ceased.  About  2000  reaping  machines,  1000 
seeders,  about  1000  thrashers,  and  a  few  thousand  ploughs 
will  probably  be  all  that  have  been  manufactured  since 
the  war  began,  and  these  from  materials  and  reserve  parts 
which  the  works  happened  to  have  in  stock,  as  no  iron, 
steel  or  other  metals  were  allowed  to  be  used  for  making 
anything  but  war  materials,  upon  which,  at  the  time  of 
writing,  all  the  factories  were  working  at  top  speed. 

After  the  war  these  factories  must  return  to  the  pro- 
duction of  agricultural  machinery,  the  demand  for  which 
will  be  enormous.  It  is  estimated  that  since  the  com- 
mencement of  the  war  quite  50  per  cent,  of  the  machinery 
in  the  hands  of  the  farmers  has  worn  out  and  become 
useless.  This  appHes  especially  to  ploughs,  harvesters 
and  thrashers,  and  the  cause  is  partly  due  to  the  extra 
work  to  which  they  have  been  put,  and  partly  to  their  use 
by  inexperienced  people. 

A  number  of  ploughs  have  been  bought  in  Sweden  by 
the  Russian  Ministry  of  Agriculture,  and  mowing,  reaping 
and  binding  machines  have  been  ordered  from  the  United 
States,  Canada  and  Sweden  for  future  dehvery.  The  last- 
mentioned  country,  however,  though  geographically  well 
situated  for  engaging  in  this  trade,  lacks  facilities  for 
producing  the  large  quantity  necessary,  while  trade  in 
American  goods  is  at  present  handicapped  by  the  fact  that 
it  can  only  be  conducted  via  Archangel  or  Vladivostok. 


AGRICULTURAL  MACHINERY,  CHEMICALS    169 

Prior  to  the  war,  Germany  and  Austria  were  the  princi- 
pal competitors  of  United  Kingdom  makers  of  steam- 
thrashing  machines  and  petroleum  engines.  After  the 
war  United  Kingdom  manufacturers  will  have  an  excellent 
opportunity  of  obtaining  a  larger  share  in  the  trade  of 
these  goods,  but  competition  from  American  manufacturers 
of  a  cheaper  type  of  thrashing  machine  may  be  anticipated. 

Food  preparing  and  other  small  machinery  of  United 
Kingdom  manufacture  will  also  find  a  ready  market.  In 
mowers,  reapers  and  horse  rakes  United  Kingdom  goods 
are  almost  out  of  the  running,  but  Canadian  manufac- 
turers, their  representative  says,  may  count  on  getting  a 
good  share  of  this  trade,  as  Canadian  harvesting  machinery 
is  more  adapted  to  Russian  conditions. 

Excellent  seeders  and  ploughs  are  now  made  in  Russia, 
and  in  a  short  time  competition  with  native  makers  will 
be  more  and  more  difficult,  but  all  makers  will  find  ready 
purchasers  immediately  after  the  war. 
s;  The  agricultural  machinery  industry  in  Russia  has 
never  had  the  benefit  of  a  protective  tariff.  Foreign 
agricultural  implements  and  machinery  have  either  been 
imported  duty  free,  or  the  duty  has  been  a  nominal  one, 
not  covering  the  duty  on  the  raw  material  which,  up  till 
fifteen  years  ago,  had  mostly  to  be  imported  by  manu- 
facturers in  Russia.  In  spite  of  this,  the  industry  has  made 
progress,  and  is  able  to  supply  half  the  machinery  required 
by  Russian  farmers.  Many  types  of  implements  have 
originated  with  Russian  makers,  and  have  been  imitated 
by  foreign  firms,  but  with  little  success.  The  Ministry 
f  of  Agriculture  is  now  quite  alive  to  the  importance  of 
this  industry,  and  it  is  expected  that  measures  will  soon 
^  be  taken  to  assist  and  encourage  Russian  makers  of 
agricultural  machinery. 

There  is  a  large  field  open  to  the  British  manufacturer 
in  the  production  of  fight  agricultural  machinery,  as  the 


170 


COMMERCIAL  RUSSIA 


American  factories  devote  themselves  to  large  types. 
Smaller  implements  will  find  a  ready  sale  if  they  are  of 
familiar  shape.  A  very  large  extension  of  the  use  of 
internal-combustion  motors  may  be  looked  for.  They 
must  be  fool-proof,  for  skilled  mechanics  of  the  modern 
type  are  almost  non-existent  in  many  parts  of  Russia, 
and  they  must  be  adapted  for  burning  crude  Russian 
petroleum,  which  has  the  advantage  over  the  American  oil 
in  leaving  almost  no  mineral  residue  when  burnt.  The 
demand  for  machine  tools  is  almost  illimitable,  and  we 
here  ought  to  be  able  to  supply  it. 

As  to  electric  motors  and  dynamos,  the  trade  in  Russia 
was  largely  supplied  by  home  manufactories  run  by 
German  companies.  Since  the  war  they  have  been  taken 
over  in  great  part,  and  there  is  no  intention  of  letting 
them  out  of  Russian  hands.  Light  high-speed  motors 
would  seem  to  find  a  ready  sale.  Electric  lamps  of  all 
kinds  are  in  great  demand.  Most  imported  electrical  ap- 
paratus comes  in  as  spare  parts  and  is  assembled  in  Russia. 

The  following  figures  for  some  aspects  of  the  machinery 
trade  of  Russia  in  1913  are  official,  and  give  some  hints 
as  to  the  possible  future  direction  of  our  trade  : 


Dynamo,  electric  telephone 
and  telegraph  apparatus 

Steam  engines   . 

Planing  machines 

Textile  machinery 

Typographic  machinery 

MiDJTig  machinery 

Miscellaneous  instruments 
and  tools 

Lathes 


Home 
production 

Total 
imports 

German 
exports 

16,865,000 
1,293,000 
1,209,000 
4,521,000 
38,00l> 
3,226,000 

638,000 
2,813,000 

10,886,000 
3,895,000 
1,555,000 
1,361,000 
1,235,000 
978,000 

5,169,000 
12,788,000 

9,522,000 
2,967,000 
1,306,000 

244,000 
1,108,000 

787,000 

4,419,000 
10,685,000 

The  mobilisation  of  Russian  industries  in  1915  affected 
the  glass  industry,  which  was  called  upon  to  produce 
for  the   military  authorities  goods   that  were  formerly 


AGRICULTURAL  MACHINERY,  CHEMICALS    171 

imported  from  abroad,  e.g.  mirrors,  lenses,  and  other 
supplies  for  optical  instruments,  thermometer  tubing,  etc. 
The  production  of  thermometers  in  Russia  is  a  new  in- 
dustry, these  being  formerly  imported  from  Germany. 
Fair  progress  was  also  made  in  the  manufacture  of  insulat- 
ing glasses  for  electrical  purposes.  Some  difficulties  were 
experienced  in  making  optical  glasses,  but  it  is  hoped 
that  these  will  gradually  be  overcome. 

The  prices  of  optical  and  other  instruments  have  gone 
up  by  some  100  per  cent.  There  is  a  great  demand 
for  microscopes,  scientific  apparatus,  field-glasses,  etc. 
Russian  industry  in  these  products  is  undeveloped,  as 
there  are  no  specialists  or  experienced  hands  available. 
Hospitals  placed  large  orders  with  glass  works  for  the 
production  of  articles  for  medical  and  surgical  use. 

As  practically  no  saws  are  manufactured  in  Russia, 
the  country  is  obliged  to  import  all  required,  and  the 
article  being  one  in  large  demand,  there  is  a  favourable 
opportunity  for  enterprising  manufacturers  to  place 
their  goods  on  the  market.  Before  the  war  Russia  received 
her  supplies  of  saws  approximately  as  follows  :  40  per  cent, 
from  Germany,  25  per  cent,  from  France,  20  per  cent, 
from  England,  10  per  cent,  from  the  United  States,  5  per 
cent,  from  other  countries. 

The  saws  mostly  in  demand  in  Russia  are  as  follows  : 
Circular  and  band  saws  (ribbon  saws),  machine  driven  for 
sawing  wood,  with  prices  about  19s.  9d.  for  circular  saw 
20  in.  diameter,  and  4|d.  per  foot  for  band  saws  1  in. 
broad.  Circular  and  band  saws  for  sawing  metals  are 
also  required.  Prices  are  as  follows  :  £1  12s.  for  20  in. 
diameter,  3  mm.  broad  and  9  mm.  thick. 

There  is  also  a  large  demand,  which  hitherto  has  been 
supphed  exclusively  by  Germany  and  France,  for  potato- 
cutting  saws,  used  to  cut  or  saw  potatoes  for  the  making 
of  vodka,  starch,  etc.     Some  thirty  or  forty  of  these  are 


172  COMMERCIAL  RUSSIA 

fixed  to  a  revolving  drum  worked  by  a  motor.  The  usual 
saw  used  for  this  purpose  (mainly  starch-making)  is  13  mm. 
broad  and  29  cm.  long,  price  13s.  per  100.  All  the  above 
prices  are  retail,  warehouse  Moscow,  duty  paid. 

In  his  general  remarks  in  his  report  for  1912,  the  Con- 
sul at  Vladivostok  writes  :  "  The  trade  in  furniture  is 
capable  of  development,  and  to  it  might  be  added  sanitary 
ware  and  toilet  accessories,  for  which,  with  the  improved 
conditions  of  living,  there  should  be  a  respectable  opening. 
Central  heating  apparatus  is  more  and  more  used,  but  in 
this  article  it  would  be  hard  to  compete  with  the  Germans, 
who  have  a  monopoly  of  the  import  and  erection.  Carpets 
and  rugs,  curtains  and  furnishing  materials  from  the 
United  Kingdom  should  be  able  to  compete  here  on  account 
of  their  recognised  quaHty,  though  the  demand  would  not 
be  large."   / 

The  Vice-Consul  at  Kharkov  reported  in  May,  1914  : 
"  During  my  recent  visit  to  Moscow,  I  heard  of  an  interest- 
ing method  of  selling  furniture  adopted  by  a  German 
manufacturer.  His  agent,  an  employee  of  the  firm,  is 
both  architect  and  designer,  and  offers  his  services  for  every 
kind  of  artistic  and  decorative  work.  This  includes  de- 
signing furniture  and  house  equipment  generally,  as  also 
wallpapers  and  stucco  ceilings  suitable  for  house-owners 
and  retail  shops.  The  firm  supplies  him  with  drawings 
and  even  complete  sets  of  model  furniture  on  a  miniature 
scale,  and  he  adapts  these  to  the  varying  circumstances. 
The  firm  sends  German  workmen  for  fitting  the  furniture 
and  wainscoting,  also  upholsterers  and  workers  in  plaster, 
and  hands  over  the  rooms  quite  ready  for  use.  1  am  told 
that  the  firm  is  successful  in  its  work,  the  designs  and 
workmanship  being  excellent  and  the  prices  comparing 
favourably  with  those  of  Russian  first-class  makers. 
The  agent's  circle  is  spreading,  and  he  is  now  extending 
his  work  to  St.  Petersburg. 


AGKICULTURAL  MACHINEEY,  CHEMICALS    173 

"  Through  art  journals,  more  particularly  German 
ones,  taking  up  the  subject  of  house  decorating,  and 
through  foreign  architects  insisting  on  specially  designed 
furniture,  the  better-class  house-owners  reaUse  that  it  is 
better  to  engage  designers  and  spend  more  money  on  the 
decoration  of  their  homes  than  formerly.  As  yet,  this 
new  mode  of  furnishing  is  confined  to  the  principal  cities, 
St.  Petersburg,  Moscow,  and  perhaps  Warsaw,  but  work 
could  undoubtedly  be  found  on  the  big  estates  and  in 
provincial  towns. 

"  Before  exporting  furniture  and  upholstery  material 
to  Kussia,  the  Russian  customs  tariff  should  be  carefully 
considered.  Thus,  for  instance,  inland  wood-carving  of 
all  kinds  pays  a  heavy  duty  and  should  be  forwarded 
separate  from  the  furniture.  Silk  materials,  or  materials 
interwoven  with  silk,  are  excluded  through  the  prohibi- 
tive tariff.  Boards  at  the  back  of  cupboards  and  un- 
varnished on  the  other  side  pay  a  lower  duty,  and  can 
occasionally  be  packed  separately  with  advantage. 

"  The  total  furniture  imports  are  not  clearly  shown  in 
the  statistics,  but  the  approximate  amount  is  £550,000, 
per  paragraphs  61-2  and  61-3  b  of  the  tariff." 

The  Austrian  Vice-Consul  at  St.  Petersburg  reports 
in  1912  :  "  The  value  of  the  imports  of  joinery  and  turnery 
amounted  to  6*5  million  roubles,  the  value  of  the  imports 
from  Austria-Hungary  being  266,000  roubles.  Two  im- 
portant Austrian  bentwood  factories  have  estabhshed 
branches  in  Russia,  which  dispose  of  large  quantities 
of  this  furniture  throughout  the  country.  German  manu- 
facturers also  supply  fair  quantities  of  furniture,  fittings 
and  upholstery  leather. ' ' 

The  Board  of  Trade  pamphlet  on  implements  and  tools 
quotes  a  recent  report  from  the  Vice-Consul  at  Omsk  as 
follows  :  "  Tools,  knives,  etc.  There  are  openings  in 
Siberia  for  tools  of  all  kinds,  knives  and  other  small 


174  COMMERCIAL  RUSSIA 

goods  of  iron  and  steel,  provided  that  manufacturers  are 
prepared  to  meet  the  requirements  of  the  Siberian  market, 
and  further,  to  compete  in  the  matter  of  prices.  At 
present  the  business  in  tools  is  chiefly  in  Russian-made 
articles,  and  what  trade  is  done  in  foreign  tools  is  almost 
entirely  in  the  hands  of  German  firms  dealing  in  German 
goods.  The  German  firms  meet  the  requirements  of  the 
Siberian  user,  not  putting  articles  on  the  market  for  which 
there  is  little  or  no  use." 

That  there  is  a  very  large  opening  for  British  enter- 
prise in  Russia  in  this  Hne  is  evident  from  the  figures 
pubhshed  by  the  Board  of  Trade.  In  1912,  Germany  sent 
into  Russia  coarse  knives  and  shears  of  all  sorts  to  the 
value  of  £22,000  ;  fine  knives  and  scissors  to  the  value  of 
£11,000,  against  which  the  total  British  export  in  1913 
of  cutlery  into  Russia  was  only  £2,000.  This  wretched 
figure  is  easily  surpassed  even  by  Austria-Hungary,  which 
exported  in  the  same  year  £6400  worth. 

The  following  is  an  extract  from  an  American  Special 
Consular  report :  "  While  America  has  done  exceptionally 
well  in  the  introduction  of  agricidtural  machinery  and 
large  implements,  it  has  failed  to  interest  Russian  dealers 
as  it  should  in  small  implements,  the  very  articles  in 
which  it  excels.  The  German  and  English  were  the 
pioneers,  and  through  energetic  measures,  coupled  with 
exemplary  business  methods,  they  have  managed  to  hold 
the  leading  position. 

"  Post-hole  diggers  are  furnished  by  America  and 
Germany,  the  prices  vary  from  30  to  85  dollars  per  dozen. 
Forks  are  made  in  large  numbers  in  Russia,  but  they  are 
also  imported  from  America,  England  and  France.  They 
range  in  price,  according  to  size,  from  Si -90  each  to 
§11-25  per  dozen.  There  is  a  great  demand  for  forks  in 
beet  culture  and  in  digging  potatoes.  Hoes  come  princi- 
pally from  England,  and  seD  for  25  cents  to  $1  apiece. 


AGRICULTURAL  MACHINERY,  CHEMICALS    175 

Sprayers  are  furnished  by  America,  Germany  and  Eng- 
land, the  latter  appearing  to  control  the  trade.  Prices 
vary  according  to  size.  Forges,  which  are  in  great  demand, 
are  made  principally  in  Russia,  but  America  has  been  able 
to  get  a  start.  They  are  disposed  of  retail  for  $14-25  to 
$30-75.  Rakes  are  a  profitable  article  of  export  for 
America,  though  the  Germans  are  doing  well,  also  the 
Swedes.  The  American  make  handled  in  Moscow  sells 
for  $5-20  a  dozen,  or  about  57  cents  each.  The  German 
makes  are  much  cheaper.  Pruning  knives  are  in  demand. 
Russia  and  Germany  fill  the  want  at  prices  ranging  from 
37-2-  cents  to  $1  each.  The  American  knife  comes  much 
higher,  the  retail  price  varying  from  $1  to  $2-50.  In 
shears  the  French  lead,  with  Germany  second.  American 
shears  retail  at  $6  a  dozen  for  the  7-inch  length  and 
$6-90  for  the  9-inch  length.  The  American  sickles  retail 
at  50  cents  each,  and  the  EngHsh  sickles  are  cheaper. 
American  lawn-mowers  come  at  $5-75  to  $10,  according 
to  size." 

The  Consul  at  Odessa  reports  that :  "  Russian  fire- 
brick manufacturers  were  again  unable  to  meet  the 
demand,  and  several  large  orders  for  firebricks  for 
the  construction  of  coke-ovens  were  placed  in  Germany, 
and  one  firebrick  factory  received  1,270  tons  of  these 
bricks  from  Glasgow  for  the  rebuilding  of  their  kilns. 
Silica  bricks  for  steel  furnaces  were  received,  as  hitherto, 
from  Germany.  British  manufacturers  ought  to  be  able 
to  compete  in  this  article." 

The  Board  of  Trade  pamphlet,  ''  Competition  with 
Germany,  etc.  etc.,"  "  Fire-proof  Bricks,  Retorts, 
Crucibles,  etc.,"  contains  some  interesting  extracts  from 
Consular  reports  in  this  connection  :  '^  The  French  Consul 
at  St.  Petersburg  in  his  report  for  the  year  1911  calls 
attention  to  the  continuous  increase  in  the  importation 
of  firebricks.     He  places  the  total  value  of  the  imports  in 


176  COMMEECIAL  EUSSIA 

1911  at  £157,797.  Of  this  quantity  Germany  supplied  the 
largest  share,  amounting  to  81,018  tons,  as  against 
2027  tons  from  Great  Britain.  H.M.  Consul  as  Helsingfors, 
in  a  despatch  written  in  August,  1914,  remarked  that 
large  quantities  of  firebricks  are  imported  from  Germany. 
He  points  out  that  there  are  no  factories  for  the  produc- 
tion of  firebricks  in  Finland,  consequently  all  supplies 
were  to  be  imported  from  abroad.  He  adds  that  if 
Scottish  firms  were  to  quote  acceptable  prices,  there 
would  be  an  opening  for  their  products  in  Finland.  H.M. 
Consul  at  Batoum,  in  a  despatch  written  in  February, 
1914,  drew  attention  to  the  efforts  of  certain  German 
manufacturers  of  firebricks  to  capture  the  market  in  the 
Caucasus  region.  It  appears  that  quantities  of  firebricks 
of  German  manufacture  were  shipped  from  a  German 
port  to  Batoum,  marked  in  such  a  way  as  to  lead  pur- 
chasers to  beHeve  that  they  were  bricks  of  a  well-known 
Scottish  make.  This  Scottish  make  of  firebrick  is  in 
constant  demand  in  the  Caucasus  district,  and  British 
manufacturers  may  be  interested  in  the  German  attempt 
to  secure  a  footing  in  this  market." 

The  British  Vice-Consul  at  Mariupol,  in  his  report  for 
1911,  stated  :  "  Local  firebrick  manufacturers  were 
overrun  with  orders,  and  were  obliged  to  refuse  contracts 
which  went  abroad,  principally  to  Germany.  The  imports 
in  1911  reached  12,023  tons,  as  compared  with  1850  tons 
in  1910.  This  quantity  was  composed  of  about  2000  tons 
of  siHca  bricks,  and  the  balance  of  ordinary  firebricks 
for  the  construction  of  coke-ovens  and  repairs  to  blast 
furnaces.  British  brick  manufacturers  only  participated 
to  the  extent  of  2  per  cent,  of  the  quantity  imported. 

Reporting  for  the  year  1913,  .the  Consul  at  Baku  states 
that :  "  Marked  activity  was  noticed  in  the  building 
trade.  The  demand  for  a  better-class  house  with  good 
fittings  and  accommodation  was  great.     Porcelain  sani- 


AGEICULTURAL  MACHINERY,  CHEMICALS    177 

tary  fittings  used  are  almost  entirely  manufectured  in 
Russia,  but  nearly  all  bear  English  lettering,  such  as 
'Best  Sanitary  Ware,'  'Manufacturers  of  Sanitary 
Fittings,"  '  Trade  Mark,'  etc.  Valves,  drainage  pipes  and 
water  fittings,  bath-heaters,  modern  doors  and  window 
fittings,  and  electric  chandeliers  mostly  come  from  Ger- 
many ;  locks,  hooks  and  carpenters'  tools  of  all  kinds  are 
imported  from  the  United  States ;  and  lifts  and  central 
heating  appliances  are  furnished  by  Germany." 

The  British  Consul  at  Odessa  reports :  "  Articles  of 
apparel,  especially  for  men.  There  is  already  in  the 
market  a  certain  amount  of  British  haberdashery,  but 
the  sale  might  be  increased.  A  big  price  is  paid 
locally  for  clothes,  and  good  cloth  and  cut  are  much  in 
demand.  Suits  are  anjrthing  from  50  to  100  per  cent, 
dearer  than  in  the  United  Kingdom.  Ready-made  clothes 
would  probably  not  stand  the  import  duty,  but  the  duty 
on  cloth  is  less  high.  If  a  British  firm  of  clothiers  estab- 
hshed  a  good  London  cutter  here  there  ought  to  be  a  good 
profit  made,  once  the  business  was  properly  started.  The 
risks  of  this  business  are  lessened  by  the  Russian  custom 
of  taking  about  one-third  of  the  cost  when  the  order  is 
given." 

And  the  Consul  at  Baku  reports :  "  Haberdashery, 
hosiery,  clothes  and  textiles.  An  increased  demand 
for  British  wearing  apparel,  which  happened  to  be  in 
fashion,  was  noticeable  in  1913.  Hats  bearing  a  British 
mark  sell  well.  British  gloves  and  woollen  goods, 
hosiery,  ties,  etc.,  find  a  ready  market.  The  better  class 
of  serges  for  clothing  for  men  and  women,  veils  and  the 
highest  grade  of  cotton  goods  are  often  inquired  for. 
Scarcely  a  demand  for  the  ordinary  class  of  foreign  cotton 
goods  exists.  These  commodities  are  supplied  by  Russian 
factories.  Imported  ready-made  clothing,  overcoats,  etc., 
are  sent  from  Germany.    Boots  and  shoes  in  large  quanti- 


178  COIVIMERCIAL  RUSSIA 

ties  are  imported  from  Germany  and  Austria-Hungary, 
and  find  a  ready  sale  at  Baku.  British-made  boots,  made 
to  suit  the  Russian  taste,  sell  well.  At  present,  the  Ameri- 
can short-toed  boots  are  much  in  fashion. 

"  In  underwear  the  peasantry  and  the  majority  of  the 
city  people  use  '  cut  wares '  only,  that  is,  cotton  or  low- 
priced  linen  bought  by  the  yard,  cut  and  made  into  under- 
garments. Knitted  goods  are  worn  only  by  the  wealthy 
and  official  classes  and  foreigners.  The  demand  is  sup- 
pHed  by  manufacturers  in  the  Baltic  provinces  and  Poland. 
Their  goods  are  serviceable  and  satisfactory,  and  compare 
favourably  with  imported  articles  from  Germany,  France, 
Belgium,  Austria  and  England,  both  in  quality  and  in  the 
style  of  the  garments  ""  (Board  of  Trade  Memorandum). 

An  Austrian  Consul  has  recently  reported  that  the 
value  of  the  imports  of  men's  clothing  in  1912  amounted 
to  2,600,000  r.,  the  greater  part  coming  from  Germany. 

The  Consul  at  Helsingfors  reports  that  there  is  good 
room  for  increase  in  the  exportation  of  British  ready- 
made  clothing  into  Finland,  where  German  clothes  are 
chiefly  sold,  any  British  goods  finding  their  way  there 
through  Germany. 

"  Local  prices  for  British  ready-made  suits,  overcoats, 
etc.,  are  extremely  high,  owing  not  merely  to  the  import 
duty,  which  is  considerable,  but  also  to  the  commission 
which  accumulates  through  the  fact  that  these  British 
goods  are  received  from  Germany,  where  they  are  pur- 
chased for  the  Finnish  market  by  dealers  from  Finland. 
The  British  goods,  however,  are  popular  and  held  in  high 
repute." 

The  Commercial  Attache  for  Russia  recently  wrote 
with  reference  to  openings  in  Poland  for  British-made 
cotton  hosiery,  stockings,  socks,  etc.  :  "  Hosiery  and 
underwear  are  imported  from  Germany  in  large  quanti- 
ties, and,  to  a  certain  extent,  from  France  and  England, 


AGRICULTUEAL  MACHINERY,  CHEMICALS    179 

and  are  sold  on  the  spot  and  exported  by  local  firms  to 
Russia  proper.  Since  last  year,  when  the  boycott  of 
German  goods  began,  a  large  number  of  travellers  from 
Austria  and  Bohemia  have  visited  Warsaw,  and  as  their 
goods  are  not  inferior  in  quality,  they  have  succeeded  in 
getting  large  orders. 

"  Some  firms  have  already  started  business  with  Eng- 
land, and  they  maintain  there  would  be  a  good  opening 
here  for  English  articles,  if  the  price  and  conditions  of 
payment  were  the  same  as  those  offered  by  German  firms. 
English  goods  are  considered  to  be  the  best,  and,  on 
account  of  this,  higher  prices  are  often  obtainable. 

"  The  following  articles  are  imported  :  Gentlemen's 
vests,  drawers,  socks  (made  of  wool,  fil  d'Ecosse  and  fil 
de  Perse),  gentlemen's  and  ladies'  gloves  (made  of  wool, 
silk  and  fil  d'Ecosse),  ladies'  stockings  (made  of  silk,  etc.), 
woollen  hose,  jerseys,  caps,  wool,  hoods.  All  these  articles 
are  bought  from  Germany  on  credit  from  six  to  eight 
months,  and  the  representatives  of  the  different  German 
houses  visit  Warsaw  every  year  at  the  beginning  of  the 
summer  and  winter  seasons.  There  would  be  a  good 
opening  for  British  firms,  but  it  is  essential  that  the  repre- 
sentatives of  the  firms  desirous  to  start  business  should 
visit  Warsaw ;  it  would  also  be  necessary  to  give  credit, 
and  a  knowledge  of  German  is  indispensable.  Some 
merchants  complain  of  a  rather  arbitrary  way  of  handling 
matters  by  English  firms  as  compared  with  German 
merchants,  who  try  more  to  satisfy  and  adapt  themselves 
to  the  local  taste  and  requirements  of  the  buyers." 

Cycles.  The  Board  of  Trade  Memorandum  is  interesting 
and  worth  quoting  in  full :  "  His  Majesty's  Consul  at 
Moscow  in  his  trade  report  for  1911  states  :  '  Bicycles 
are  chiefly  of  German  manufacture,  or  assembled  in 
Russia  from  German  or  British  parts,  and  the  trade  is  an 
increasing  one,  but  I  am  glad  to  be  able  to  state  that 


180  COMMERCIAL  RUSSIA 

during  the  last  couple  of  years  more  cycles  of  British 
manufacture  are  to  be  seen,  which  from  accounts  received 
give  general  satisfaction,  and  I  feel  convinced  that  if 
British  firms  would  give  credit  to  merchants  here,  a 
greatly  increased  business  in  this  article  could  be  done/ 

"  In  his  report  for  1912,  one  of  the  Consuls  states :  '  The 
trade  in  cycles  is  an  ever-increasing  one,  and  although 
the  majority  of  machines  are  of  German  origin,  or  put 
together  in  Russia  from  British  or  German  parts,  British 
cycles  are  to  be  seen  on  the  market  in  increasing  quantities, 
and  as  the  latter  give  satisfaction  to  the  purchasers,  I 
am  of  the  opinion  that  a  greatly  increased  business  could 
be  done  with  these  machines  if  British  manufacturers 
would  meet  the  merchants  here  on  the  credit  question, 
which  is  at  the  present  moment  the  chief  drawback,  as  the 
German  manufacturers  will  give  a  credit  of  from  six  to 
nine  months  from  date  of  despatch,  while  British  firms 
require  cash  payments  against  shipping  documents.  It 
should  also  be  taken  into  consideration  that  a  heavy  duty, 
amounting  to  over  £3,  is  levied  on  every  cycle  of  foreign 
manufacture  entering  Russia/ 

"  According  to  Austrian  Consular  reports,  bicycles 
were  imported  in  Russia  in  the  year  1911  to  the  value  of 
approximately  £146,000  ;  most  of  the  imports  were  drawn 
from  Germany,  the  United  Kingdom  contributing  rela- 
tively small  quantities.  There  were  also  large  imports 
of  cycle  accessories,  and  of  parts  and  raw  material  for  the 
use  of  cycle  manufacturers  in  Russia.  On  account  of 
the  bad  condition  of  the  roads,  even  in  the  cities,  and  the 
severity  of  the  winters,  the  cycle  as  a  means  of  travel  is 
scarcely  likely  to  gain  in  popularity. 

"  The  Austrian  Consul  at  Kieff  mentions  in  his  report 
for  1912  that  imports  of  cycles  into  his  district  are  chiefly 
of  German  and  British  origin. 

'The  Austrian  Consul  as  Moscow  states  that  in  spite 


AGRICULTUEAL  MACHINERY,  CHEMICALS    181 

of  the  high  import  duties,  and  a  considerable  output  on 
the  part  of  Russian  manufacturers,  the  imports  of  cycles 
from  the  United  Kingdom  and  Germany  continue  to 
increase.  The  well-known  makes  find  a  ready  sale  at  good 
prices,  but  it  is  difficult  to  introduce  unknown  machines. 
For  Russian  roads  bicycles  must  be  strongly  built,  but 
must  not  have  an  unwieldy  appearance.  The  price  of  a 
machine  adapted  to  Russian  requirements,  with  free- 
wheel, nickel  rims,  etc.,  is  about  £4  5s.  free  at  factory. 

"  A  report  by  the  Austrian  Consul-General  at  Odessa 
mentions  that  bicycles  and  parts  are  imported  chiefly 
from  Germany  and  Austria. 

''  A  French  Consular  report  on  the  trade  of  Russia  in 
1911  states  that  the  value  of  the  imports  of  cycles  in 
that  year  amounted  to  1,447,912  r.,  a  considerable  advance 
on  the  figures  for  the  preceding  years,  which  averaged 
from  800,000  to  900,000  r." 

The  British  Vice-Consul  at  Moscow  states  that  nothing 
in  the  photographic  line  is  suppHed  by  Great  Britain 
to  Russia,  no  offers  are  forthcoming  from  British  firms, 
and  no  commercial  travellers  visit  the  town,  and  no 
samples  of  British  goods  are  received.  He  continues  with 
the  advice  that  British  firms  wishing  to  do  business  direct 
should  quote  prices  in  Russian  currency  and  free  at  Tula  ; 
if  they  quote  subject  to  duty,  questions  may  arise  later, 
and  the  price  may  not  work  out  as  anticipated.  One 
German  firm  at  least  has  consented  to  quote  prices  free 
at  Tula. 

An  Austrian  Consul  reports  that  most  of  the  importa- 
tion in  this  fine  comes  from  Germany,  but  that  Russian 
firms  are  now  making  great  progress  with  native  manu- 
factures. 

The  British  Trade  Commissioner  who  visited  Siberia 
was  unable  to  find  any  British  photographic  goods  there, 
all  the  appliances  used  being  German.    The  largest  Ger- 


182  COMMERCIAL  RUSSIA 

man  camera  was  priced  at  £26  in  a  Tomsk  shop,  but  there 
was  a  good  demand  for  Kodaks  from  12s.  6d.  upwards. 

The  exportation  of  British  colours  to  Russia  is  decreas- 
ing, the  British  trade  being  ousted  by  German,  Swedish, 
Danish  and  French  goods.  Our  Consul  at  Helsingfors 
thinks  that  in  red  earth,  minium,  colouring  clays  and 
white  lead  the  United  Kingdom  could  compete  success- 
fuDy  with  Germany  and  increase  its  trade. 

Russia  is  now  beginning  to  make  its  own  white  lead, 
and  also  many  other  colours,  but  chiefly  of  a  medium  or 
inferior  quaHty  ;  the  cost  of  transport  and  high  duty 
make  foreign  high-class  paints  very  expensive. 

There  is  apparently  a  good  opening  on  a  somewhat 
smaller  scale  in  South  Russia,  for  the  Vice-Consul  at 
Novorossisk  reports  that  colours,  paints  and  varnishes 
could  be  advantageously  sold  in  the  Northern  Caucasus, 
in  such  towns  as  Ekaterinodar,  Stavropol  and  Armavir  ; 
he  states  that  almost  all  such  material  that  was  imported 
into  Novorossisk  came  from  Germany. 

The  Board  of  Trade  quotes  an  Austrian  Consular  report 
as  follows  :  "As  regards  china-ware,  the  chief  articles 
of  import  are  teacups  and  saucers,  and  dinner  services 
with  decorated  borders.  Light  German  china-ware  is 
stated  to  find  a  large  sale  ;  other  goods  in  demand  are 
china  ornaments,  fruit  dishes  and  highly  decorated  gilt 
vases  and  plates  for  wall  decoration.  Crockery,  principally 
plates  and  dishes  with  ornamental  borders,  cheap  tea 
services,  milk  jugs,  fruit  dishes  and  plates,  wall  plates 
and  cachepots  are  imported  from  Germany.  There  is  a 
fair  demand  for  flower  vases  and  decorated  ornaments 
from  Northern  Bohemia  and  Vienna.  It  is  stated  that 
English  crockery  finds  only  a  small  sale  on  account  of  the 
high  price.  In  general  there  is  a  demand  for  all  articles 
the  manufacture  of  which  demands  skill,  accuracy  and 
taste." 


AGRICULTUEAL  MACHINERY,  CHEMICALS    183 

The  Consul  at  Odessa  reports :  "  Sports  requisites, 
too,  might  be  exploited  better,  or  at  any  rate,  British 
firms  might  endeavour  to  get  a  larger  share  of  the  profits 
of  this  trade  than  at  present.  Roughly  speaking,  the 
local  shops  charge  for  such  things  as  tennis  balls,  racquets, 
etc.,  as  many  roubles  (2s.  l|d.)  as  they  cost  shillings  in 
the  United  Kingdom.  As  the  import  duty  is  at  present 
very  low,  there  is  no  real  reason  for  this." 

Referring  to  petroleum  lamps  and  stoves,  the  Chamber  of 
Commerce  Journal  says  that  the  Austro -Hungarian  Con- 
sular correspondence  (Vienna)  advises  that  petroleum 
lamps  find  a  ready  market  in  the  province  of  Rostov-on- 
Don,  and  German  firms  are  doing  excellent  business  in 
this  article.  Petroleum  stoves  are  for  the  most  part  of 
Russian  manufacture,  and  are  sold  to  the  peasants  at 
very  moderate  prices :  90  kopecks  to  2  roubles  (Is.  10|d. 
to  4s.  3d.)  for  a  stove  of  7  kilos  (15|  lbs.). 

The  Board  of  Trade  reports  on  cast-iron  goods  (stoves, 
baths,  etc.)  :  *'  In  a  recent  report  the  Belgian  Consul  at 
Kharkofi  points  to  the  opportunity  of  immediately  placing 
great  quantities  of  iron  and  steel  castings  in  Russia.  He 
describes  the  market  in  these  products  as  capable  of 
great  expansion,  and  states  that  the  local  works  are  quite 
unable  to  supply  the  demand.  It  appears  that  on  certain 
goods  duties  have  been  reduced  with  a  view  to  encouraging 
their  importation.  The  British  Vice-Consul  at  Abo,  in 
his  report  on  the  trade  of  that  district  in  1913  states  that 
much  of  the  trade  which  now  finds  its  way  into  German 
hands  might  be  diverted  to  the  United  Kingdom  if  only 
firms  would  send  representatives  regularly  to  Finland  or 
appoint  agents  there.  He  states  that  boiler  parts,  consist- 
ing of  plates,  rolled  and  flanged  to  shape,  and  corrugated 
furnaces  are  in  fair  demand.  At  present  these  are  all 
imported  from  Sweden  or  Germany,  in  sizes  ranging  from 
about  200  to  1850  square  feet  of  heating  surface.    H.M. 


184  COMMERCIAL  RUSSIA 

Consul  at  Helsingfors,  in  his  trade  report  for  1911,  stated  : 
The  import  of  Hght  castings  from  the  United  Kingdom 
increased  considerably,  that  from  Germany  only  slightly. 
The  total  import  was  greater  also.  Germany  still  con- 
tributes more  of  these  articles  than  the  United  Kingdom, 
but  the  lead  of  the  former  country  was  considerably 
reduced  in  this  respect  in  1911." 

In  jewellery  and  trinkets  the  United  Kingdom  does 
a  neghgible  business,  only  £200  worth,  compared  with 
£44,000  from  Austria-Hungary,  and  no  less  than  £139,250 
worth  from  Grermany. 

An  article  in  the  London  Chamber  of  Commerce  Journal 
for  January,  1914,  says  that  the  home  industry  pro- 
duces articles  of  inferior  quahty,  which  are  sold  only 
among  the  lower  classes.  To  develop  business,  prices 
must  be  adjusted  to  meet  the  competition  of  other  coun- 
tries, and  an  agent,  suppUed  with  a  good  stock  of  articles, 
should  visit  the  principal  towns.  Price  lists  should  be 
in  the  Russian  language,  and  prices  quoted  in  Russian 
currency,  precautions  which  are  usually  omitted  by 
British  exporters.  Payments  are  usually  made  as  follows  : 
^VTiolesale,  at  90  days  with  discount ;  retail,  at  six  months 
against  acceptance. 

The  Board  of  Trade  memorandum  on  the  subject  of  Gold 
and  Silversmiths'  Wares  (including  electro-plate)  gives  an 
extract  from  an  American  Consular  report,  which  is  worth 
quoting  :  "  The  peasant  class  in  Russia,  which  forms 
77  per  cent,  of  the  total  population,  still  uses  the  wooden 
spoon.  The  people  of  this  class  cannot  afford  steel  knives, 
and  never  have  plated  ware.  The  middle  class  use  steel 
and  plated  ware,  and  the  wealthy  classes  usually  have 
sterling.  Most  of  the  steel  and  plated  ware  is  manu- 
factured in  Warsaw,  aud  very  Httle  is  imported.  Prob- 
ably 90  per  cent,  of  the  people  of  Russia  use  the  very 
cheapest  grades  of  table  ware,  and  only  10  per  cent. 


AGEICULTURAL  MACHINERY,  CHEMICALS    185 

plated  or  silver  ware.  Silver-plated  knives  and  forks  may 
be  purchased  at  reasonable  prices.  Those  having  no 
decoration  sell  for  $3*80  to  $6-50  a  dozen  (15s.  lOd.  to 
27s.),  those  manufactured  from  foreign  steel,  and  engraved, 
17s.  8d.  to  30s.  2d.  a  dozen,  and  those  that  have  been 
pressed  from  one  piece  of  steel  and  slightly  decorated, 
14s.  4d.  to  31s.  3d.  a  dozen.  These  quotations  are  for  the 
cheaper  grades  only,  as  they  are  the  best  sellers,  and  the 
only  ones  that  can  be  profitably  imported." 

Viennese  silver  handles  and  fittings  are  preferred  to 
German  ones,  on  account  of  the  better  taste. 

In  marine  chains,  anchors  and  grapnels  Great  Britain 
has  a  shght  advantage  of  Germany,  but  the  total  trade 
seems  quite  small  at  present.  Great  Britain  exporting 
only  £1,500  worth  in  1913,  against  Germany's  £1,300 
worth  in  1912  ;  but  in  non-marine  chains  there  is  a  better 
opening,  Germany  sending  £10,400  worth  compared  with 
our  £5,400  worth. 

In  1912  Germany  exported  frames  and  parts  of  um- 
brellas and  sunshades  to  Russia  to  the  value  of  £27,200, 
and  complete  umbrellas  and  sunshades  to  the  value  of 
£2,250,  while  the  gross  British  figure  was  only  £300. 
There  appears  to  be  brisk  trade  in  these  articles  in  the 
Odessa  district,  but  in  Moscow  there  are  several  large 
local  factories,  so  that  only  novelties  are  imported,  chiefly 
of  fancy  patterns  for  ladies  at  from  25s.  to  40s.,  and  men's 
black  silk  umbrellas  with  natural  wood  handles  selhng  at 
15s.  to  25s. 

The  total  value  of  German  imports  of  lace  and  em- 
broidery into  Russia  for  1912  of  all  kinds  was  £97,700  ; 
the  Austrian  figure  for  1913  was  £3,000  ;  the  British  figure 
was  £44,400,  to  which  we  should  add  £2,200  foj-  millii)ery. 
The  total  imports  of  tulle  lace  and  embroidery  into  Russia 
surpassed  £640,000  in  1911,  in  which  Great  Britain  only 
took  fourth  place.     The  following  is  extracted  from  the 


186  COMMEECIAL  KUSSIA 

report  for  1912  of  the  Consul  at  Warsaw  :  "  Levers  lace. 
At  the  time  of  the  last  tariff  agreement  between  Germany 
and  Kussia,  which  came  into  operation  in  March,  1906, 
Germany  had,  owing  to  the  rising  lace  industry  at  Plauen 
in  Saxony,  become  a  large  exporter  into  Russia  of  heavy 
laces,  and,  consequently,  no  additional  duty  was  imposed 
on  laces.  On  the  other  hand,  as  no  fine  counts  of  yarn 
were  spun  in  Germany,  she  did  not  object  to  the  increase 
from  18  r.  to  30  r.  50  k.  per  pound,  which  the  Russian 
spinners  obtained  in  the  duty  on  imported  yarns  of  counts 
above  80.  As  neither  these  counts  nor  the  fine  warps  for 
bobbing  yarns  are  made  in  Russia,  manufacturers  of 
Levers  lace  in  that  country  are  obliged  to  import  all 
such  yarns  from  the  United  Kingdom  and  France,  against 
which  countries  they  were  enabled  to  compete  in  Lever 
laces,  owing  to  the  prevalence  of  lower  wages  in  Russia. 

"  When,  after  the  revolutionary  movement  of  1905-8, 
wages  rose  and  the  manufacturers  in  Russia  found  that  the 
imported  Lever  laces  were  able  to  compete  successfully, 
they  petitioned  the  Russian  Government  to  impose  a 
higher  duty  on  laces,  or  to  lower  the  duty  on  yarns.  The 
former  course  was  impossible,  owing  to  the  agreement  with 
Germany,  and  the  latter  was  successfully  opposed  by  the 
spinning  interests. 

''  In  order  to  meet  the  difficulty  of  the  Lever  lace  manu- 
facturers, a  project  is  now  being  worked  out  by  which 
the  duty  on  the  heavy  German  laces  will  remain  stationary, 
but  by  fixing  a  standard  of  width  and  weight  per,  say, 
12  yards,  a  graduated  increasing  duty  on  laces  weighing 
less  or  containing  greater  length  is  proposed.  This  will  hit 
Nottingham  fine  goods  without  damaging  the  heavier 
article  imported  from  Germany. 

"  Plain  net.  The  plain  net  tulle  on  which  laces  are 
embroidered  was  up  to  a  year  ago  almost  exclusively 
smuggled  across  the  frontier  from  Germany,  and  the  yearly 


AGRICULTURAL  MACHINERY,  CHEMICALS    187 

loss  to  the  Imperial  Exchequer  was  estimated  at  about 
£80,000.  Thanks,  however,  to  energetic  means  adopted  by 
the  Government,  this  evasion  of  the  duty  has  been  wholly 
stopped.  Most  of  the  tulle  is  of  British  origin,  but  some  is 
produced  by  local  manufacturers. 

"  If  the  British  firms  enter  the  market  they  must  work 
through  a  reliable  agent,  as  the  majority  of  the  consumers 
are  poor,  small  men,  in  no  wise  to  be  trusted,  and  the  know- 
ledge and  presence  of  a  local  agent  is  therefore  indispens- 
able." 

The  following  is  copied  from  the  Board  of  Trade  memo- 
randum on  the  subject  of  Perfumery  and  Cosmetics : 
"  An  Austrian  Consular  report  from  Petrograd  for  1911 
states  that  the  development  of  local  manufacture  has 
confined  the  import  trade  in  perfumery  almost  entirely 
to  high-class  goods  which  are  not  produced  in  Russia. 
Small  quantities  of  face-paint,  hair-dye  and  perfumes 
are  supplied  by  Austria-Hungary.  In  his  report  for  1912 
the  Consul  gives  the  value  of  the  imports  of  perfumery 
and  cosmetics  as  about  £412,000.  Germany  is  stated  to  be 
the  most  important  source  of  supply,  followed  by  France  ; 
only  very  small  quantities  come  from  Austria. 

"  The  Austrian  Consul-General  at  Odessa  reports  that 
no  great  effort  has  been  made  by  foreign  makers  of  per- 
fumes, etc.,  to  introduce  their  goods  to  that  market,  but 
that  where  the  attempt  has  been  made  the  results  have 
been  satisfactory. 

"  According  to  a  recent  issue  of  the  London  Chamber  of 
Commerce  Journal,  most  of  the  perfumery  sold  at  Tiflis 
comes  from  Russian  manufactories.  At  the  same  time 
there  is  a  supply  of  some  importance  from  Germany  and 
France,  and  to  a  less  extent  from  England.  The  import 
trade  in  perfumery  might  readily  be  increased  by  firms 
sending  capable  travellers  and  choosing  a  representative 
well  acquainted  with  the  place. 


188  COMMERCIAL  RUSSIA 

"  The  Lo')ulon  Clmrnber  of  Commerce  Journal  states, 
on  the  authority  of  the  French  Consul  at  Helsingfors, 
that  the  imports  of  perfumery  to  Finland  comprise  both 
fine  and  cheap  goods.  The  articles  finding  a  ready  sale 
are  toilet  waters,  vinegars,  oils  for  the  hair,  brilHantine, 
cosmetics,  dentifrice  liquids,  powders  and  pastes,  and 
bottles  of  perfumes  packed  in  fancy  boxes  at  a  moderate 
price.  Bottles  of  assorted  perfumes  on  gilt  or  silvered 
metal  stands,  two,  three  or  four  bottles,  would  also  have 
a  good  chance  of  success,  especially  at  the  time  of  the 
Christmas  and  New^  Year  festivals.  These  articles  should 
be  offered  not  only  to  perfumers,  but  also  to  buyers  of 
fancy  goods.  The  use  of  perfumery  is  not  general  amongst 
the  people  of  Finland^  and  varies  considerably  amongst 
the  classes  and  races.  It  is  mostly  in  favour  amongst  the 
Russians.  Scandinavians  seem  to  look  for  antiseptic  or 
hygienic  properties  in  articles  of  toilet  in  preference  to 
dehcacy  of  perfume.  According  to  the  trade  statistics, 
essential  oils  and  concentrated  essences  comprise  more 
than  a  fifth  of  the  total  imports,  and  are  supphed  for  the 
most  part  by  Germany.  A  characteristic  of  trade  with 
merchants  in  Finland  is  the  custom  of  not  fixing  a  definite 
date  of  payment.  This  is  the  principal  reason  for  utilising 
German  commission  agents.  Three  or  four  months'  credit 
is  often  given  without  acceptance." 


XVIl 
TEXTILES   AND   TEXTILE   MACHINERY 

Cotton  industry — Textile   machinery — Silk   industry — Woollen  industry — 
Flax — Hemp — Jute. 

IN  considering  the  possibilities  of  British  trade  with  Russia 
in  textiles,  account  must  be  taken  of  Russia's  own 
manufacturing  developments.  Russia  is  one  of  the  largest 
consumers  of  cotton  goods  in  the  world,  vieing  with  China 
and  India  in  this  class  of  clothing,  notwithstanding  its 
colder  cHmate.  The  hundreds  of  thousands  of  peasants 
live  largely  an  indoor  life  in  the  winter,  and  in  their 
well-heated  rooms  can  wear  in  comfort  the  same  cotton 
garments  as  they  wear  in  the  fields  in  summer.  But 
in  no  other  manufacturing  industry  has  Russia  made 
more  rapid  strides  than  in  the  manufacture  of  cotton 
goods.  It  has  the  advantage  of  being  fairly  self-contained 
in  regard  to  raw  material,  producing  some  milHons  and  a 
half  of  bales  of  cotton  annually,  while  Persia  and  other 
neighbouring  Asiatic  countries  supply  the  balance  of  her 
requirements.  The  home  consumption  is  so  enormous 
that  it  has  added  to  the  stimulus  of  home  production, 
while  the  Moscow  and  other  manufacturers  have  taken 
care  that  their  interests  in  the  matter  of  tariff  duties  have 
been  well  looked  after.  As  a  result  its  cotton  industry 
ranks  third  in  Europe  and  fourth  in  the  world,  Germany 
being  second  with  11,000,000,  and  while  Russia  has  some- 
thing under  10,000,000  spindles  and  250,000  looms  (count- 
ing those  of  Poland  and  Finland),  Great  Britain  has  some 

189 


190  COMMERCIAL  RUSSIA 

60,000,000  spindles  and  900,000  looms,  and  the  United 
States  about  32,000,000  spindles.  A  report  just  issued 
by  the  Russian  Commission  for  the  Supply  of  Raw  Materials 
to  Cotton  Works  states  that  the  average  Jiumber  of  spindles 
running  during  the  past  year  was  8,122,033,  the  distribu- 
tion being  as  follows  : 


Moscow  district 
Petrograd-Baltic  district 
Finland 
Other  districts 


No.  works 


73 

20 

6 

4 


No.  spindles 


5,999,660 

1,802,399 

226,158 

93,816 


The  cotton  manufacturers  of  Russia,  and  more  especi- 
ally Moscow,  are  the  millionaire  merchant  princes  of  the 
country,  and  some  of  their  cotton  mills  in  construction  and 
equipment  are  the  finest  in  the  world.  Four  of  these  miUs 
are  in  the  hands  of  one  family,  the  Morosovs,  who  employ 
between  them  over  50,000  workpeople.  In  the  one  visited 
at  Orechevo,  where  finished  cotton  goods  are  manufac- 
tured, including  spinning,  weaving,  bleaching,  dyeing, 
mercerising  and  printing,  over  15,000  people  are  employed 
and  22,000  housed.  In  the  colony  are  two  hospitals,  seven 
doctors  (two  of  them  women)  ;  two  schools  with  more 
than  forty  teachers,  a  creche  where  children  are  looked 
after,  a  theatre  accommodating  1500,  three  bands,  athletic 
grounds,  including  a  football  field,  billiard  tables,  etc., 
all  of  which  are  absolutely  free  to  the  entire  population. 
Food  and  clothing  are  suppHed  by  stores  run  by  a  com- 
mittee of  the  workers,  the  purchases  being  made  by  the 
firm  on  their  behalf.  In  this,  too,  as  in  very  many  other 
cases,  the  general  manager  is  an  Enghshman.  The  Kraen- 
golm  mill  at  Narva,  about  100  miles  from  Petrograd,  has 
a  staft'  of  thirty  EngUshmen,  and  a  hospital  that  cost 
£80,000. 

In  the  cheaper  grades  of  cotton  goods,  it  is  impossible 
for  the  British  manufacturer  to  compete  with  the  local 


TEXTILES  AND  TEXTILE  MACHINERY    191 

industry,  and  even  in  the  higher  grades,  in  which  a  fair 
business  is  now  being  done,  the  tendency  is  for  the  Russian 
manufacturer  to  gradually  meet  even  this  competition. 
A  considerable  export  trade  in  brightly-coloured  cotton 
goods  is  already  being  done  by  Russia  to  Persia,  China 
and  other  Asiatic  countries,  several  of  the  Moscow  manu- 
facturers having  branches  and  depots  in  those  countries, 
and  labelling  the  goods  in  their  languages.  Nevertheless, 
there  will  for  some  time  be  a  good  demand  for  the  finer 
counts  and  especially  for  garments. 

In  1913,  women's  and  girls'  clothing  of  silk,  wool  and 
cotton  were  sent  to  Russia  by  Germany  to  the  value  of 
£104,000,  and  by  Austria  £17,000.  The  only  British  figure 
published  by  the  Board  of  Trade  is  in  respect  of  wool 
clothing,  £6,300,  showing  a  large  balance  in  favour  of  the 
enemy.  Big  figures  are  also  reached  in  cotton  yarns. 
Unbleached,  we  held  the  preponderance  of  trade,  £256,400, 
against  £25,850  from  Germany,  and  £22,060  from  Austria. 
But  an  entirely  different  state  of  affairs  is  shown  by  the 
bleached  and  dyed  cotton  yarns.  Here  the  British  con- 
tribution was  £5,100,  against  Germany's  £67,600,  and 
Austria's  £15,545.  The  British  figures  for  cotton  piece 
goods  are  not  given,  but  Germany's  total  is  £26,250,  and 
Austria's  £9,645.  In  cotton  prints,  Germany  sent  to 
Russia  nearly  eight  times  the  value  of  the  British  goods — 
£64,000,  compared  with  £8,500 — ^while  in  cotton  velvets 
and  plushes  the  enemies'  figures  are  £90,650  and  £4,940, 
the  British  total  not  being  given.  Britain  supplied  one- 
third  more  linen  manufactures — £36,400  as  against  £14,900 
Germany  and  £9,700  Austria  ;  but  we  were  beaten  hollow 
in  silk  manufactures  (piece  goods,  ribbons,  etc.).  The 
figures  make  lamentable  reading  :  Great  Britain,  £11,500  ; 
Germany,  £238,350  ;  Austria,  £16,150.  In  all  these  lines 
there  are  great  possibiHties  for  British  manufacturers. 

It  is,  however,  in  textile  machinery,  and  possibly  dyes, 


192  COMMEECIAL  RUSSIA 

that  the  greatest  opportunities  will  be  afforded.  There 
is  scarcely  a  textile  factory  in  Russia  that  has  not,  as  part 
of  its  equipment,  English  machinery.  Between  85  and 
90  per  cent,  of  all  cotton -spinning  machinery  used  in 
Russia  is  of  British  make.  Until  quite  recently  nearly 
every  mill  was  managed  by  British  technical  experts, 
managers,  assistants,  carders,  weavers,  and  engineers. 
This  had  a  great  influence  in  the  introduction  of  British 
machinery. 

It  is  generally  agreed,  says  a  recent  writer,  that  there 
are  more  German  mill  managers  in  Russia  than  there  used 
to  be,  and  fewer  Enghsh,  and  possibly  our  neglect  of 
languages  is  one  of  the  causes  for  this.  The  Russian 
language  now  is  an  essential  in  these  managerial  posts, 
and  if  it  can  be  acquired  by  Swiss  and  Germans,  we  should 
be  able  to  do  so  as  well.  The  Germans  have  made  great 
inroads  in  our  textile  machinery  trade,  and,  of  course, 
their  competition  is  far  more  formidable  in  that  than  it 
is  in  textiles.  Spinning  machinery  is  standardised,  and 
that  we  should  maintain  our  supremacy  there  may  be 
twisted  into  a  reproach  ;  little  technical  knowledge  is 
required  to  sell  a  standardised  article.  We  are  not  here 
primarily  concerned  with  machinery,  but  in  this  trade,  as 
in  others,  the  German — fairly  or  not — ^is  credited  at  once 
with  bolder  initiative  and  closer  calculations.  We  give 
more  than  we  need  with  our  heavy  machinery,  and  a 
wasteful  excess  of  power  which  may,  perhaps,  be  traced 
to  the  cheapness  of  our  coal,  and  this  is  characteristic  of  a 
certain  indolence  and  profusion  in  the  ways  of  a  nation 
accustomed  to  be  paramount  in  commerce.  The  Germans 
have  practically  taken  the  woollen  machinery  trade  from 
us  in  Russia,  and  also  to  a  great  extent  that  for  the  finishing 
trades  in  both  cotton  and  wool.  The  more  cause  is  there 
to  get  something  back  not  only  in  machinery,  but  in 
textiles.    The  textile  machinery  business  has  been  almost 


TEXTILES  AND  TEXTILE  MACHINERY    193 

entirely  in  the  hands  of  two  or  three  EngHsh  firms  who 
are  well  looked  after  by  their  own  representatives  on  the 
spot,  and  whose  principals  have  personally  made  frequent 
visits  to  Russia,  and  are  quite  familiar  with  the  conditions 
prevaiHng. 

When  the  first  Russian  textile  factories  were  founded, 
says  Mr.  Gurevitch  in  a  recent  number  of  The  Engineer, 
there  was  hardly  any  machinery  industry  in  Germany, 
and  hence  the  whole  of  the  equipment  and  fittings  for 
the  Russian  textile  factories  was  ordered  from  England, 
whose  textile  industry  was  known  the  world  over.  Eng- 
land's influence  on  the  Russian  textile  industry  has  pre- 
vailed to  the  present  time,  and,  although  the  Russian 
textile  factories  gradually  began  to  buy  auxihary  and 
prime  movers  from  Germany  and  Switzerland,  they  have, 
with  the  exception  of  the  Russian  Pohsh  textile  factories, 
mostly  given  the  preference  to  the  English  manufacture 
,  when  buying  the  special  machines  required  for  textile 
production. 

Russia's  demand  for  textile  machines  is,  however,  very 
large,  and  the  industry  with  its  yearly  production  of  a 
value  over  £135,000,000,  and  its  army  of  three-quarters 
of  a  million  workmen,  possessing  an  enormous  inland 
market  and  supplying  the  demands  of  a  population  of 
180,000,000  with  textile  products,  belongs  to  the  oldest 
and  most  prosperous  branches  of  Russia's  trade. 

It  is  therefore  clear  that  the  EngHsh  export  of  textile 
machines  to  Russia,  which  had  a  value  of  £995,296  in 
1913,  comprising  12  per  cent,  of  the  total  English  exports 
of  these  machines,  could  be  considerably  increased.  The 
English  export  of  textile  machines  to  Russia  shows  a 
steadily  rising  tendency.  For  instance,  in  the  first  seven 
months  of  1912  textile  machines  to  the  value  of  £506,730 
were  exported  to  Russia.  In  the  same  period  of  1913 
the  export  amounted  to  £520,800,  and  in  the  months  from 


I 


194  COMMERCIAL  RUSSIA 

January  to  July,  1914,  to  £548,115.  Next  to  British 
India,  whence  EngUsh  textile  machines  were  exported 
to  the  value  of  £1,280,480  in  the  first  seven  months  of 
1914,  Russia  was  the  best  customer  for  EngHsh  textile 
machines. 

The  importance  of  the  Russian  market  for  this  branch 
of  the  Enghsh  machinery  industry  must  greatly  increase 
after  the  war.  Three  years  ago  Germany  bought  more 
textile  machines  from  England  than  Russia,  but  the 
Enghsh  export  of  textile  machines  to  Germany  decreased 
every  year.  For  the  months  from  January  to  July,  1912, 
the  English  export  of  textile  machinery  to  Germany 
reached  a  value  of  £566,828,  in  the  year  1913  of  £442,900 
for  the  same  period,  and  in  1914  of  only  £348,223.  The 
total  importation  of  textile  machines  into  Germany  had  in 
1913  a  value  of  £733,000,  and  82  per  cent,  went  from 
England. 

In  consequence  of  the  recent  German  tendencies,  which 
now  aim  at  having  a  purely  national  German  poUcy,  in 
order  to  drive  foreign  products  from  the  inland  market, 
so  that  at  least  a  part  of  the  expected  decrease  in  exports 
after  the  war  may  be  covered  through  increased  dehveries 
to  the  inland  market,  one  may  expect  that  the  English 
exports  of  textile  machines  to  Germany  will  experience  a 
further  dechne. 

The  German  manufacturers  of  textile  machinery  have 
informed  the  German  textile  industry  that  they  are  in  a 
position  to  dehver  spinning  and  weaving  machines  equal 
in  quality  and  price  to  those,  till  now,  bought  in  England. 

Further  particulars  about  the  importation  of  textile 
machines  by  Russia  down  to  the  present  time  from  the 
countries  competing  against  England  may  here  be  of  use. 
The  following  textile  machines  were  exported  from  Ger- 
many to  Russia  in  1913  :  140  machines  for  wool  combing, 
to  the  value  of  £20,000;   106  wool- spinning  machines  for 


TEXTILES  AND  TEXTILE  MACHINERY    195 

carded  yarn,  value  £50,000  ;  72  cotton-spinning  machines, 
worth  £15,000  ;  143  machines  for  preparing  and  spinning 
flax  and  hemp,  value  £20,000  ;  410  machines  for  twisting, 
spooHng,  and  winding  of  yarns  and  thread,  value  £22,500 1 
792  weaving  looms,  value  nearly  £100,000  ;  33  machines 
for  the  preparation  and  working  up  of  cotton,  value  £5,000, 
etc.  etc.,  making  a  total  of  over  a  quarter  of  a  million 
sterling.  From  these  figures  one  sees  that  Eussia  bought 
chiefly  weaving  looms  and  wool-spinning  machines  from 
Germany.  She  also  imported  some  textile  machines  from 
Switzerland.  According  to  Swiss  statistics  for  1913  the 
following  machines  were  exported  to  Russia  :  weaving 
looms  to  the  value  of  806,000  f.,  other  weaving  machinery, 
377,000  f. ;  spinning  machines,  68,000  f.,  making  with 
other  items  a  total  of  1,588,000  f. 

In  order  to  get  a  clearer  view  of  the  export  of  textile 
machinery  to  Russia,  the  following  table  is  given  : 


England 
Germany 
Switzerland 
U.S.A. 


Exports  to 

Russia  in  per 

Exports  to 

Total 

cent,  of  total 

Russia 

exports 

exports 

Per  cent. 

£995,296 

£8,288,000 

12 

268,000 

2,500,000 

10.7 

62,200 

558,000 

11.2 

— 

447,000 

— 

Total  exports,  £11,787,000. 


One  sees  from  these  figures  that  the  EngHsh  textile 
machines  were  at  the  head  in  the  markets  of  the  world  as 
well  as  in  Russia,  and  that  the  total  English  exports  for 
these  machines  were  larger  than  the  German  exports  by 
about  three-and-a-quarter  times.  The  Russian  cotton 
mills  during  the  war  have  suffered  very  severely  from  the 
lack  of  dyes,  hitherto  imported  almost  entirely  from  Ger- 
many. As  the  demand  is  largely  for  bright-coloured  and 
heavily  printed  cottons,  this  has  been  a  serious  matter, 


196  COMMEECIAL  RUSSIA 

and  at  one  of  the  cotton-printing  works  visited  at  Moscow, 
they  were  only  able  to  turn  out  very  light  patterns,  and 
those  only  to  a  Umited  degree.  If  we  can  meet  the  demand 
for  dyes,  there  is  an  entirely  new  field  for  British  enter- 
prise, and  one  which,  with  the  development  of  cotton 
goods  manufacturing  in  Russia,  offers  immense  possi- 
bilities. 

Although  Russia  occupies  sixth  place  in  the  world  in 
the  silk  industry,  and  has  nearly  three  hundred  silk- 
weaving  mills,  with  an  output  of  about  four  millions 
sterling,  a  great  deal  is  imported,  the  figures  for  1910,  the 
last  available,  being  £3,500,000. 

Trans-Caucasus  and  Turkestan  produce  annually  about 
6000  tons  of  dry  cocoons  and  in  these  districts  consider- 
able silk  weaving  is  carried  on,  the  balance  of  the  cocoons 
finding  their  way  to  the  silk  mills  at  Lyons. 

The  silk  industry  is  divided  into  three  branches — the 
working  of  raw  silk,  the  manufacture  of  ribbons,  hand- 
kerchiefs and  fabrics,  and  the  preparation  of  brocades. 
The  outputs  of  the  latter  is  increasing  rapidly,  as  is  also 
that  of  the  silk-weaving  mills  which  have  dyeing  and 
finishing  plants.  As  already  pointed  out,  Germany  sent 
to  Russia  more  than  twenty  times  as  much  silk  piece 
goods,  ribbons,  etc.,  as  Great  Britain,  while  even  Austria's 
exports  were  in  excess  of  ours.  The  improved  financial 
position  of  the  Russian  people  will  give  a  stimulus  to  the 
silk  trade,  both  in  the  development  of  the  silk  industry  in 
Russia  and  in  the  increase  of  her  imports. 

Notwithstanding  its  considerable  output,  the  Russian 
woollen  industry  cannot  satisfy  the  demands  of  the  home 
market.  In  1910,  for  instance,  Russia  imported  yarn  to 
the  value  of  £750,000,  thread  to  the  amount  of  £1,240,000, 
and  ready-made  articles  valued  at  £1,230,000  ;  altogether 
woollen  goods  were  imported  to  the  value  of  £3,220,000. 
In  1913  the  imports  of  wool,  yarn  and  thread  were  about 


TEXTILES  AND  TEXTILE  MACHINEEY     197 

the  same,  i.e.  £2,000,000.  Foreign  wools  also  are  finding  a 
regular  and  increasing  market  in  Russia.  The  imports  of 
raw  wool  were  valued  in  1913  at  £5,600,000. 

Up  to  the  twenties  of  the  last  century  the  Russian  mills 
were  mainly  employed  in  supplying  cloth  for  the  needs  of 
the  Army,  and  only  after  the  fifties  began  to  work  for  the 
market.  After  many  fluctuations  the  Russian  woollen 
industry  in  1879  showed  signs  of  a  steady  progress,  and 
recent  figures  give  the  number  of  enterprises  as  1037, 
valued  at  £23,000,000,  the  total  number  of  spindles  in  use 
at  all  the  mills  as  1,423,627,  the  number  of  looms — hand 
and  power — 43,173,  and  the  total  number  of  operatives 
engaged  as  142,049  (88,669  men,  50,355  wcfmen,  and  3025 
children).  Of  all  branches  of  the  Russian  textile  industry 
this  is  probably  the  only  one  where  the  number  of  men 
exceeds  the  number  of  women.  The  output  of  all  the  mills 
is  about  69,000  tons  of  yarn  and  62,000  tons  of  texture. 
Each  year  Russian  mills  are  doing  larger  business  ;  their 
wool  consumption,  valued  at  £7,000,000  in  1890,  rose  in 
^  a  decade  to  £16,000,000,  and  to  £20,000,000  in  4910. 

The  Russian  woollen  industry  is  grouped  in  the  Baltic 
and  Pohsh  provinces,  which  are  principally  engaged  in  the 
manufacture  of  thin  voile  fabrics  ;  in  the  Moscow  indus- 
trial region,  which  furnished  in  great  quantities  thin 
cloths  and  voile  fabrics  ;  in  the  Province  of  Chernigov, 
where  there  are  many  cloth  mills  ;  and,  lastly,  in  the 
Province  of  Simbirsk  and  Tambov,  which  are  engaged 
exclusively  in  the  manufacture  of  heavy  coarse  cloths 
from  Russian  wool.  Besides,  there  are  many  small  and 
large  koustarny  mills  in  Russia  engaged  in  the  manufac- 
ture of  felt  and  felt  goods. 

It  may  be  prophesied,  says  The  Times  Book  of  Russia, 
that  in  the  future  Russian  mills  will  use  imported  wool 
mainly,  seeing  that  in  Central  and  Southern  Russia  cereal 
growing  is  taking  the  place  of  sheep  farming,  and,  to  a 


198  COMMERCIAL  RUSSIA 

lesser  degree,  the  same  is  the  case  in  the  Caucasus  and  the 
Siberian  Steppes.  This  increase  in  production  principally 
results  from  the  diminution  of  flocks.  According  to  the 
latest  statistics  pubHshed  by  the  Department  of  Agrarian 
and  Agricultural  Organisation,  there  are  76,000,000  thick- 
fleeced  and  5,000,000  fine-fleeced  sheep  in  the  empire,  the 
latter  figure  having  decreased  from  8,000,000  in  the  course 
of  a  decade.  As  agriculture  increased  in  Russia,  so 
pasturage  decreased,  bringing  about  shortage  of  wool  and 
increases  in  price,  which  latter,  coinciding  with  the  general 
cheapening  of  wool  on  the  world's  market  incident  on  the 
rearing  of  merinos  in  Austraha  and  Argentina,  let  in 
foreign  wool.  In  consequence  Russian  farmers  had  to  face 
the  alternative  of  introducing  modern  methods  into  the 
old  pastoral  system,  "or  of  taking  up  a  more  remunerative 
branch  of  farming.  Many  choose  the  latter,  and  some 
have  tried  to  carry  on  the  old  migratory  pastoral  system 
by  transporting  their  flocks  to  the  Siberian  Steppes.  The 
Russian  sheep  farmer  by  his  conservative  methods  places 
the  Russian  millowner  under  growing  dependence  on  the 
foreigner.  At  the  moment  there  seems  nothing  but  a 
rapid  increase  in  wool  impoi-ts  to  be  expected. 

There  is  in  all  the  principal  centres  a  very  large  demand 
for  suit  lengths  of  woollens,  instead  of  whole  pieces.  Ger- 
many has  speciahsed  in  this  trade,  and  a  large  number  of 
German  firms  in  England  were  engaged  in  this  business. 
,  .Russian  flax  plays  the  same  part  in  the  world's  market 
as  does  American  cotton.  During  the  last  three  or  foui* 
years  a  great  change  has  been  taking  place  in  the  flax 
industry.  The  best  technical,  scientific  and  practical 
experts  at  the  disposal  of  the  Government,  the  Zemstvos, 
and  also  private  organisations  are  all  engaged  in  im- 
proving the  condition  of  the  flax  industry,  both  with 
regard  to  the  cultivation  of  flax  and  the  most  successful 
technical  treatment  of  its  fibres. 


TEXTILES  AND  TEXTILE  MACHINERY      199 

Great  Britain's  purchases  of  Russian  flax  and  tow  in 
1913  were  valued  at  £3,300,000,  or  more  than  one-third 
of  the  whole  export,  this  material  being  used  for  the 
lower  counts.  In  view  of  the  general  situation  of  the  Unen 
trade,  Belfast  manufacturers  have  of  late  been  devoting 
special  attention  to  the  conditions  and  prospects  of 
Russian  flax  production.  In  1868  Russian  mills  possessed 
hardly  110,000  spindles;  in  1888  there  were  248,868 
spindles,  and  in  1908  362,382  spindles.  The  number  of 
spindles  in  1913  was  416,274,  an  increase  of  5 J  per  cent, 
over  the  previous  year.  The  quantity  of  raw  flax  treated 
was  80,000  tons  ;  50,000  tons  of  yarn  were  spun,  and 
4250  tons  of  Hnen  thread  manufactured.  The  number  of 
looms  at  work  was  15,049.  The  whole  output  in  the  form 
of  yarn  is  used  by  the  Russian  weaving  mills. 

The  above  figures  show  that  the  flax  industry  in  Russia 
is  making  good  progress.  Notwithstanding  this,  how- 
ever, it  consumes  only  20  per  cent,  of  the  total  quantity 
of  flax  raised  in  the  country,  which  amounts  to  about 
400,000  tons  per  annum. 

The  manufacture  of  cord  and  twine  was  known  in 
Russia  a  long  time  ago.  Ropemaking,  even  if  it  did  exist, 
played,  however,  no  important  part  on  account  of  the 
small  amount  of  river  and  marine  craft  then  owned  in 
Russia.  The  first  rope  works  were  founded  by  the  English 
at  Kholmorgy  (near  Archangel).  A  great  impetus  was 
given  to  the  ropemaking  industry  in  the  reign  of  Peter 
the  Great,  when  Russia  became  a  maritime  Power  and 
needed  a  considerable  supply  of  cordage  for  her  fleet.  At 
that  time  the  Government  displayed  an  active  interest  in 
the  development  of  hemp  culture  and  in  the  establish- 
ment of  rope-walks. 

During  the  eighties  of  the  last  century  the  hemp  in- 
dustry was  carried  on  only  in  a  few  districts,  principally 
in  Petrograd.    In  Petrograd  there  is  a  production  valued 


200  COMMERCIAL  RUSSIA 

at  over  £200,000,  of  which  the  Hoth  Works  contribute 
about  £120,000,  representing  3200  tons.  In  the  Province 
of  Yaroslav,  second  in  importance,  the  works  of  Zhuravlev 
turn  out  more  than  4800  tons,  valued  at  £134,000.  The 
Provinces  of  Orel,  Kherson,  Ryazan  and  Perm  manufac- 
ture more  than  1600  tons  each.  Besides  the  working  of 
hemp  in  factories,  the  koustarny  manufacture  of  cords 
and  twine  is  carried  on  in  the  Provinces  of  Tver,  Orel, 
Chernigov,  Kaluga,  Voronezh  and  others. 

The  area  of  land  under  hemp  cultivation  has  recently 
diminished.  In  1903  there  were  over  2,000,000  acres 
sown  in  European  Russia,  while  in  1912  this  area  had 
shrunk  to  1,500,000  acres.  The  cultivation  of  hemp  in 
Russia  is  not  on  a  scientific  basis,  and  the  crop  depends 
exclusively  on  weather  conditions.  Hence  the  production 
fluctuates  from  50  per  cent,  to  70  per  cent,  without  any 
proportion  to  the  increase  or  otherwise  of  the  area  sown. 
For  instance,  the  harvest  returns  in  1905  were  290,000 
tons,  in  1907  487,000  tons,  and  in  1909  303,000  tons, 
while  in  1912  the  total  yield  was  354,000  tons  of  hemp. 

The  manufacture  of  jute  goods  in  Russia  began  com- 
paratively recently.  In  the  eighties  it  hardly  existed. 
Attempts  to  grow  jute  in  the  south  of  Russia  have  ended 
in  failure,  and  the  Russian  jute  mills  depend  on  imported 
raw  material.  The  figures  representing  the  quantity  of 
jute  imported  therefore  serve  as  an  indication  of  the  growth 
of  this  industry  in  Russia.  The  imports  in  1881  consisted 
of  102,000  tons,  in  1901  of  248,000  tons,  and  in  1910  of 
391,000  tons.  At  the  present  time  there  are  ten  jute 
factories  in  Russia,  with  45,000  spindles  and  about  2400 
looms,  employing  10,638  operatives,  and  the  value  of 
their  total  production  is  estimated  at  £17,000,000. 

Nearly  all  the  jute  factories  in  Russia  are  engaged  in 
the  manufacture  of  sacks. 


XVIII 
TRADING   IN  RUSSIA 

Shop  signs — Street  markets — The  fairs — Nijni-Novgorod  fair — Irbit 
fair — Kiev  fair. 

APECULIAEITY  of  Kussian  shops,  especially  those  of 
the  smaller  kind,  and  those  in  the  villages  and  small 
towns,  is  to  indicate  the  nature  of  the  business  by  more 
or  less  elaborate  paintings  outside  the  shop.  The  butcher 
shows  a  picture  of  cattle,  pigs  and  sheep  ;  the  dairyman 
a  cow,  and  what  is  intended  to  be  a  representation  of 
butter  and  cheese,  and  so  on.  Some  of  these  pictures  are 
very  crude,  but  others  are  quite  elaborate.  It  is  a  relic 
of  the  times  when  few  people  could  read  or  write,  and  it 
is  not  without  its  advantages  even  to-day. 

Many  of  the  Russiai^  manufacturers,  especially  in  the 
textile  trades,  have  their  own  shops  in  several  of  the 
principal  centres,  where  they  sell  only  their  own  pro- 
ductions at  retail.  It  occurred  to  me  that  this  practice 
must  militate  against  other  dealers  handling  the  same 
lines,  but  I  was  assured  that  it  did  not. 

Street  markets  are  an  important  feature  of  Russian 
life.  Moscow  has  its  own  Sunday  Petticoat  Lane  market, 
where  almost  every  conceivable  second-hand  article  can 
be  bought.  At  different  seasons,  special  markets  are 
held  for  the  sale  of  dried  fish,  mushrooms  and  other 
articles,  and  here  the  winter's  supplies  are  purchased. 

In  the  smaller  towns  and  larger  villages  much  of  the 
trade  is  done  at  the  markets.     Farmers  bring  in  their 

201 


202  COMMERCIAL  RUSSIA 

produce  for  sale,  and  scores  of  booths  and  stalls  afford 
them  ready  opportunity  of  buying  their  own  requirements 
with  the  proceeds  of  their  sales. 

Retail  shops  in  Russia  do  not  deliver  goods  as  they 
do  in  this  country.  The  cab  fares  before  the  war  were 
very  cheap,  and  it  was  no  unusual  thing  to  see  cabs  piled 
up  with  parcels  of  every  shape  and  size,  representing  the 
purchases  of  the  occupant.  Even  the  larger  stores  have 
no  dehvery  wagons.  An  American  firm  at  Petrograd 
bought  and  paid  for  a  large  safe,  and  proceeded  to  give 
instructions  for  its  dehvery.  "  We  have  nothing  to  do 
with  that,"  was  the  reply.  "  There  is  the  safe,  it's  yours, 
and  you  can  do  what  you  like  with  it."  Expostulation 
was  in  vain,  and  the  firm  had  to  make  its  own  arrange- 
ments for  carting  it  to  their  office  and  putting  it  into 
position. 

Most  foreign  goods  are  handled  by  agents  who  sell  to  the 
wholesalers  and  the  larger  retail  trade  in  the  bigger  cities, 
and  the  same  course  is  adopted  when  the  foreign  manu- 
facturer has  his  own  representative  in  Russia.  It  would 
involve  too  much  risk  and  trouble  to  attempt  to  deal 
with  all  the  small  retailers  in  the  different  small 
towns. 

In  the  case  of  machinery  and  plant  for  manufacturing, 
business  is,  of  course,  done  direct ;  the  agent,  where 
there  is  one,  passing  on  the  order  ;  though,  as  pointed  out 
in  the  chapter  on  agents,  he  often  acts  as  a  principal, 
making  his  own  profit  instead  of  seUing  on  commission. 
The  Government,  MmiicipaUties,  Zemstvos  and  Co-opera- 
tive Societies  prefer  to  buy  direct  from  the  manufacturer, 
though,  as  a  rule,  the  intervention  of  a  commission  agent 
is  welcomed,  so  long  as  the  invoices  are  made  direct  by 
the  manufacturer.  A  resident  representative  enables  the 
purchaser  to  give  more  expHcit  instructions,  make  bar- 
gains, and  to  avoid  all  the  difficulties  and  annoyances  of 


TRADING  IN  RUSSIA  203 

translations,  and  the  risk  of  misunderstanding,  and  even 
in  the  largest  businesses  is  preferred  to  dealing  direct  by 
correspondence. 

A  great  deal  of  business  is,  however,  done  at  the  numer- 
ous fairs  held  all  over  Russia.  According  to  official  returns, 
in  the  whole  of  Russia  there  are  each  year  about  16,000 
fairs,  with  a  total  turnover  of  5,000,000,000  roubles.  The 
great  portion  of  these  consist  of  local  fairs  of  short  duration 
for  the  exchange  of  agricultural  products,  with  a  turnover 
of  less  than  10,000  roubles.  The  fairs  of  secondary  import- 
ance, with  a  turnover  of  10,000  roubles  to  100,000  roubles, 
comprise  10  per  cent,  of  the  total  number;  whereas  the 
fairs  of  primary  importance,  with  a  turnover  of  more  than 
100,000  roubles,  comprise  approximately  1  per  cent. 
There  can  be  no  doubt,  however,  that  fairs  have  lost  their 
hold  on  Russia,  the  necessity  for  their  existence  being 
gradually  removed  as  transport  facilities  make  it  more 
easy  for  buyer  and  seller  to  get  into  close  and  more 
frequent  touch. 

The  principal  fair  is,  of  course,  that  of  Nijni-Novgorod, 
a  town  on  the  Volga  about  400  miles  east  of  Moscow. 
It  has  been  estabUshed  here  for  more  than  a  century,  and 
owes  its  existence  at  this  point  to  the  transportation 
facilities  of  the  Volga  and  its  tributaries. 

The  main  building  of  the  fair,  the  Gostinny  Dvor,  is  a 
large  and  imposing  building  in  which  all  the  administra- 
tive work  of  the  fair  is  carried  on  by  Government  officials, 
and  where  also  the  branch  office  of  the  Imperial  Bank  is 
open  during  the  fair  period.  In  this  area  there  are  about 
2500  shops,  mostly  one  or  two  storied  stone  buildings  with 
a  localised  display  of  goods.  Streets,  as  a  rule,  follow 
the  designation  of  the  articles  displayed  in  them :  Fur 
Trade  Row,  Striped  Linen  Row,  Soap  Row,  Glass  Row, 
etc.  Together  with  the  booths  in  the  outer  fair,  there  are 
nearly  10,000  booths.     From  the  Exchange,  the  Peter- 


204  COMMERCIAL  RUSSIA 


1 


burg  and  Alexander  Nevski  Streets  lead  parallel  to  the 
Oka  shore  to  the  northern  part  of  the  outer  fair  opening 
into  the  Cathedral  square  with  the  Alexander  Nevski. 
Further  on  is  the  so-called  row  of  bells  which  hang  on 
wooden  frames.  The  Streilka  promontory  commands 
a  fine  view  of  the  town  of  Nijni-Novgorod  across  the 
river.  At  the  western  end  of  Nijegorod  Street  are  the 
circus  and  amusement  booths  and  caravansky  stands  in  a 
small  square  where  rice,  raisins,  dried  peaches,  pistachio 
nuts  and  other  Persian  products  are  sold.  From  this 
district,  Tartar  Bridge,  across  the  north  arm  of  the  canal, 
leads  to  the  inner  fair  and  the  Chinese  Rows.  East  of  the 
bridge  is  the  centre  for  the  sale  of  Persian  goods,  while 
Russian  shawls  are  also  offered  in  the  same  neighbour- 
hood. Carriage  Row  contains  an  exhibit  of  every  variety 
of  vehicle.  The  Brazilian  Passage  is  frequented  by  retail 
dealers  in  gold  and  other  precious  ornaments.  Of  the 
other  streets  crossing  Nijegorod  Street  the  most  important 
is  Tsar  Street,  with  its  stocks  of  soap,  mostly  from  Kazan, 
and  Makariev  Street,  where  the  merchants  offer  groceries 
and  spices.  Southwards  from  the  Exchange,  Alexander 
Nevski  Street  leads  to  the  inner  fair  with  stalls  for  musical 
instruments  and  various  iron  wares  and  ikons  on  its  left 
side.  To  the  east  of  the  main  fair  are  situated  shops  with 
displays  of  miUinery,  jewellery  and  trinkets  of  all  kinds. 
The  railways  situated  at  the  south  end  of  the  fair  lead  to 
the  industrial  centres  of  Vladimir  and  Moscow. 

Duiing  the  past  and  preceding  years,  omng  to  the  war, 
the  importance  of  Nijni-Novgorod  has  been  still  further 
diminished ;  firstly,  since  the  chief  buyers  for  one  of  its 
most  important  products,  furs — namely,  Germany  and 
Austria — were  naturally  miable  to  participate  ;  secondly, 
because  the  prices  of  many  commodities  have  been  regu- 
lated by  the  Government ;  thirdly,  the  requirements  of 
the  Army  have  been  so  numerous  that  very  Uttle  has  been 


TRADING  IN  RUSSIA  205 

left  over  to  be  sent  to  the  great  clearing-house  of  the 
year  ;  and  fourthly,  the  lack  of  transport. 

In  consequence  of  the  difficulties  of  making  exhibits 
at  the  fair  this  year,  many  large  merchants  in  Central 
Russia  and  Moscow  agents,  as  well  as  every  Siberian 
company,  decided  not  to  participate  in  the  fair  at  all,  so 
that  many  of  those  who  were  responsible  for  a  large  busi- 
ness turnover  in  previous  years  were  this  year  absent 
altogether.  The  number  of  firms  dealing  at  the  fair 
amounted  to  1496,  as  compared  with  the  figures  2082  in 
1915,  2963  in  1914,  and  2920  in  1913.  The  most  important 
market  in  Russia  connected  with  the  fair  is  the  textile 
.market,  but  during  the  past  two  years,  owing  to  the  war, 
many  factories  have  been  taking  on  merely  w^r  require- 
ments, and  this  has  diminished  considerably  the  produc- 
tion for  the  home  market,  although  many  made  strenuous 
efforts  to  keep  up  their  connections  in  this  direction,  and 
not  decrease  the  production  of  cheap  manufactures.  In 
the  production  of  the  more  expensive  cloths,  silk,  etc., 

,  efforts  were  made  to  restrict  the  output. 

^  The  fair  opens  about  July  15th  and  continues  until 
September.  Goods  are  not  sold  by  samples,  but  in  bulk, 
the  actual  stocks  being  stored  in  the  various  warehouses. 
The  shops  or  bazaars  in  the  Administrative  building  are 
devoted  to  the  sale  of  goods  at  retail,  and  afford  a  good 
opportunity  for  the  introduction  of  British  goods.  The 
annual  turnover  of  Nijni-Novgorod  Fair  in  normal  times 
approximates  twenty  milfion  pounds  sterhng,  and  the 
number  of  visitors  runs  to  hundreds  of  thousands. 

Next  to  the  Nijni-Novgorod  Fair  in  matter  of  turnover 
comes  the  Irbit  Fair,  but  this  also  has  shown  signs  of 
decadence. 

I  Furs  and  hides  form  the  articles  in  which  most  trade 
is  carried  on,  but  partly  owing  to  diminished  supplies 
from  Siberia  and  partly  to  the  demand  of  foreign  houses 


I 


206  COMMEECIAL  EUSSTA 

to  buy  direct  from  the  Siberian  sources,  there  has  been  a 
considerable  decline  in  this  market. 

Irbit  has  been  the  centre  of  the  fur  supply  for  Russian 
fur  dealers,  and  the  furs  which  remain  unsold  at  Irbit  go 
to  Nijni-Novgorod. 

Another  important  occasion  in  the  year  book  of  fairs 
is  the  Kiev  Contract  Fair,  at  which  most  of  the  bankers, 
manufacturers  and  agriculturists  meet  for  the  settlement 
of  outstanding  accounts,  and  to  make  new  contracts  in- 
volving large  amounts  of  money/ 


XIX 
BOOTS,  SHOES  AND  LEATHER 

Russian  tanneries — Increased  demand  for  boots — Not  confined  to  cheaper 
qualities — Trade  opportunities  after  war. 

IN  no  branch  of  industry  has  there  been  such  an  up- 
heaval since  the  war,  or  is  it  more  difficult  to  foretell 
the  future  position,  than  in  leather  and  its  products. 
Necessity  is  the  mother  of  production  as  well  as  of  inven- 
tion, and  the  demand  for  boots  for  the  armies  and  the 
difficulties  of  importation  have  caused  the  tanneries  and 
boot  factories  of  Russia  to  make  immense  strides  since  the 
war  commenced. 

A  very  large  proportion  of  the  leather  tanned  in  Russia 
consists  of  youft,  a  coarse  Russian  leather  made  in  the 
villages  in  the  most  primitive  manner.  There  were,  how- 
ever, considerable  tanneries  in  Petrograd,  Moscow,  Odessa, 
Berdichev  and  Taganrog.  Mention  must  also  be  made 
of  the  birch-bark  tanned  Russian  leather,  which  bears  a 
very  high  reputation,  and  was  shipped  in  considerable 
quantities  to  England  and  other  parts  of  the  world. 

Notwithstanding  the  enormous  production  of  hides  in 
Russia  and  the  fact  that  its  importation  of  tanning 
materials  amounted  to  four  milHons  sterling,  there  was 
a  very  great  demand  for  leather  and  boots  and  shoes,  the 
former  being  in  many  cases  from  Russian  hides  sent  to 
foreign  countries,  there  tanned,  and  subsequently  sent 
back  as  finished  product. 
The  scarcity  of  tanning  material   and  of  raw  hides 

207 


208  COMMEECIAL  RUSSIA 

formerly  imported,  especially  heavy  sole  leather,  led  to  a 
combination  of  all  the  tanners  in  the  country  into  an 
organisation  known  as  the  Pan-Russian  Society  of  Tanners, 
which,  during  the  war,  has  been  almost  exclusively  em- 
ployed in  supplying  the  Government,  and  has  been  very 
closely  affiliated  with  the  War  Department.  In  addition, 
the  Russian  Government  and  the  Municipal  authorities 
have  made  considerable  efforts  to  develop  the  leather 
and  boot-making  industries.  The  Conseiller  Imperial, 
M.  Muratoff,  has  been  appointed  by  the  Government  to 
draw  up  a  programme  of  the  measures  to  be  taken  for  the 
extension  of  these  trades.  The  municipality  of  Mariopol 
has  established  a  large  new  tannery,  and  several  other 
similar  manufactories  are  in  process  of  erection  in  the 
district  of  Ekaterinoslav. 

The  departmental  authorities  of  Samara  have  offered 
a  sum  of  100,000  roubles  to  each  person  who  will  establish 
a  big  manufactory  in  the  district.  A  large  shoe  factory 
is  just  about  to  be  opened  at  Kiev,  and  another  at  Saratoff. 
Similar  efforts  are  to  be  made  in  other  districts.  One  can 
foresee  that  after  the  war  the  leather  and  shoe  industry 
of  Russia  will  be  enormously  developed,  and  will  become 
one  of  the  most  important  industries  of  the  country. 

Since  the  declaration  of  war,  the  hide  and  leather 
industry  in  Siberia  has  been  greatly  developed.  Numerous 
tanneries  have  been  constructed  in  the  Omsk  district.  A 
company  has  just  been  formed  there  with  the  object  of 
producing  sole  and  upper  leather,  which  it  is  hoped  to 
turn  out  at  the  rate  of  60,000  hides  a  year.  The  tanneries 
already  in  existence  are  making  every  effort  to  augment 
their  production  of  leather.  Leather  manufacturers  in 
the  Bijsk  district,  who  produce  annually  200,000  skins, 
have  extensions  in  view,  by  means  of  which  they  hope 
to  raise  the  output  to  300,000.  Speaking  generally,  the 
leather  and  hide  industry  of  Siberia  has  a  big  future  before 


BOOTS,  SHOES  AND  LEATHER  209 

it,  for  cattle  raising  in  the  Siberian  Steppes  is  being  more 
and  more  extended  every  day.  Altogether,  Siberia  sends 
into  the  Eussian  market  more  than  5,500,000  hides  of 
large  cattle,  and  this  quantity  can  very  easily  be  doubled. 

The  chief  point  of  interest  in  this  lies  in  the  fact  that 
the  demand  for  tanning  materials  and  for  the  heavier 
leathers  not  made  in  the  country  will  be  very  much  larger 
than  before  the  war,  and  that  our  opportunity  is  by  no 
means  confined  to  the  capture  of  Germany's  previous 
share  of  this  trade. 

There  is,  however,  another  factor  that  will  very  largely 
augment  the  demand  for  both  leather  and  for  boots  and 
shoes.  Millions  of  men  in  the  army  have  been  wearing 
leather  boots  regularly  for  the  first  time  in  their  lives. 
Among  the  peasants  a  pair  of  boots  was  usually  a  luxury 
to  be  worn  only  on  special  occasions  and  expected  to  last 
a  lifetime.  When  on  rare  occasions  they  came  to  Moscow 
or  some  other  big  city,  they  carried  their  boots  with  their 
luggage,  and  only  put  them  on  when  they  arrived  at  the 
station.  The  demand  for  boots  and  shoes  in  Eussia  will 
be  enormously  increased ;  ten  or  twenty  times,  in  my 
opinion.  But,  it  will  be  said,  if  they  could  not  afford  to 
buy  boots  before,  how  can  they  do  so  after  the  war  ? 
The  answer  is  in  the  aboHtion  of  vodka.  As  stated  in 
another  chapter,  this  has  increased  the  productive,  the 
earning  and  the  saving  power  of  the  peasant,  and  created 
a  demand  for  comforts  which  finds  its  first  expression  in 
hats  for  the  women  and  boots  for  all.  Of  course,  this 
applies  to  a  cheap  and  standard  line  rather  than  to  the 
higher  qualities. 

The  demand,  however,  will  be  by  no  means  confined 
to  the  cheaper  qualities.  Eussians  of  the  upper  and 
educated  classes,  especially  the  town-dwellers,  are  par- 
ticularly neat  in  their  dress,  paying  great  attention  to 
the  matter  of  gloves,  and  footwear.     Among  an  impor- 


I 


210  COMMEECIAL  EUSSTA 

tant  section  of  the  travelled  public  there  exists  a  decided 
predilection  for  British-made  articles,  and  that  tendency 
is  Hkely  to  be  strongly  emphasised  by  our  closer  alliance. 
These  classes  desire  smart  footwear,  and  have  always  been 
willing  to  pay  good  prices.  Formerly  this  smart  footwear 
came  chiefly  from  the  United  States  ;  then,  in  a  descend- 
ing scale,  from  Vienna,  Paris,  and  Berhn.  Hardly  any 
were  sent  direct  from  England.  American  boots  are 
appreciated,  though  regarded  as  somewhat  exaggerated 
in  form.  Paris  fashions  were  admired  by  the  travelled 
purchasers  in  society,  while  the  business  world  bought 
the  heavier-shaped  boots  of  Berlin  manufacture. 

But  it  is  to  be  remarked  that  there  was  a  fast  growing 
class  of  buyers  who  demanded  boots  and  shoes  of  moderate 
price,  and  this  demand  was  partly  met  by  the  local 
factories  and  largely  by  the  Germans.  It  was  they  who 
suppUed  boots  selling  at  from  12s.  to  15s.  per  pair,  though 
the  Austrians  were  also  sending  some. 

As  regards  the  style  of  footwear,  it  is  to  be  observed 
that  Kussians,  as  a  rule,  have  small,  well-shaped  feet, 
with  rather  high  instep.  A  point  must  be  made  of  showing 
oS  the  foot  to  advantage.  For  the  higher-classed  articles 
strong  but  supple  calf  is  much  appreciated,  while  patent 
leather  is  much  worn,  both  in  the  shape  of  boots  and  shoes 
for  '*  dressy  "  occasions.  Fancy  stitching,  if  not  overdone, 
is  appreciated  for  men's  and  boys'  wear,  and  is  essential 
in  the  case  of  boots,  shoes  and  slippers  for  ladies  and 
children.  In  the  latter  classes  great  latitude  for  fancy  is 
permissible.  High  prices  will  be  paid  for  really  good  and 
tasteful  work.  It  is  probable  that,  at  least,  in  this  matter 
of  the  more  decorated  footwear,  it  would  prove  highly 
remunerative  to  export  the  goods  partly  manufactured 
from  England,  to  be  finished  in  Eussian  workshops.  In 
this  way  considerable  saving  would  be  efiected  in  freight, 
customs  charges  and  other  costs. 


BOOTS,  SHOES  AND  LEATHER  211 

Speaking  generally,  soles  should  not  be  as  thick  as  in 
footwear  for  England.  Although  the  cold  in  Russia  is 
intense,  it  is  dry,  and  the  cold  does  not  penetrate  through 
the  soles.  Moreover,  during  the  rainy  season,  and  especi- 
ally from  September  to  March,  practically  everybody 
wears  goloshes.  There  is,  by  the  way,  a  huge  demand 
for  rubber  shoes  of  all  kinds,  both  in  full  and  children's 
sizes,  but  this  is  amply  catered  for  by  the  Russian  Ameri- 
can Rubber  Company  of  Petrograd,  who  employ  alto- 
gether some  fifty  thousand  hands,  and  have  branches  and 
ramifications  in  every  part  of  the  empire. 

The  British  Consuls  in  Russia  lay  particular  stress 
upon  the  opportunities  for  British  boot  manufacturers  in 
Russia  after  the  war.  Writing,  for  example,  from  Khar- 
kofi,  Vice-Consul  Blakey  adopts  an  optimistic  tone, 
and  incidentally  he  gives  the  following  note  :  ''  German 
laced  boots  and  ladies'  French  shoes  have  been  sold  here 
for  a  number  of  years  in  small  quantities.  Recently 
American  makes  have  been  introduced,  and  now  com- 
mand a  satisfactory  sale."  The  idea  is  also  expressed 
that  after  the  war  German  boots  are  not  likely  to  be 
popular  in  Russia,  and  that  an  excellent  chance  will  be 
offered  for  exploitation  by  the  enterprise  and  energy  of 
British  makers.  Reporting  on  the  Mariopol  district, 
Vice-Consul  Walton  is  equally  confident  in  his  anticipa- 
tions concerning  boots  and  shoes,  etc.  Under  the  heading 
of  "  Openings  for  British  Trade,"  he  mentions  that 
"  foreign  boots  are  in  great  favour,  and  this  demand  has 
been  principally  met  by  Germany  and  America."  Eng- 
land certainly  ought  to  obtain  a  share  of  this  trade,  and 
Mr.  Walton  adds  :  ''In  order  to  carry  on  a  profitable 
business,  British  firms  must  be  prepared  to  have  reliable 
agents  knowing  the  country  and  the  clientele  at  principal 
trading  centres,  as  great  care  must  be  exercised  in  choos- 
ing possible  buyers.    The  Russians  are  fond,  as  a  rule,  of 


212  COMMERCIAL  EUSSIA 

English  manufactures,  and  highly  approve  of  British 
boots." 

The  boot  shops  in  Russia  are  empty.  Enormous,  prices 
have  been  paid  for  boots.  The  demand  after  the  war 
will  be  urgent  and  very  great,  and  no  class  of  British 
manufactures  has  better  opportunities  and  to  none  is 
the  urgency  of  making  immediate  preparations  more 
important  than  the  boot  and  shoe  trades. 

Personal  investigation  is,  however,  necessary.  All  the 
Boards  of  Trade  and  Chambers  of  Commerce  in  Russia  and 
England  combined  can  do  very  httle  in  helping  the  indi- 
vidual manufacturer  to  get  into  touch  with  responsible 
agents  and  buyers.  But  "  the  game  is  well  worth  the 
candle,"  and  the  expense  incurred  will  prove  a  very  profit- 
able investment. 

It  may  be  interesting  to  note  that  the  present  duties 
on  boots  range  from  one  penny  per  pound  avoirdupois 
for  the  cheaper  grades  to  three-halfpence  per  pound  for 
kids  and  higher  quahties. 


XX 
MOTOR  CARS 

Importations — English  cars  in  Russia — Russian  manufacturers — Prospects — 
Motor  transport — Sales  before  the  war — German  activity — New  State 
^  roads. 

IN  the  year  1911  Kussia  took  from  us  eighty-one  com- 
plete cars  and  seven  chassis,  of  a  total  value  of  £42,000. 
Three  years  later  she  paid  in  round  figures  £400,000  for 
312  complete  cars  and  383  chassis.  In  1913  she  pur- 
chased more  cars  from  us  than  did  Germany,  Belgium 
and  Spain  combined,  and  probably  if  the  ultimate  destina- 
tion of  the  109  cars  purchased  by  Germany  that  year 
could  be  traced,  the  majority  would  be  found  in  Russia. 
In  1914  the  value  of  motor  parts  exported  to  Russia  was 
nearly  £132,000,  exclusive  of  tires  ;  but  these  figures  are 
swollen  on  account  of  the  large  purchases  when  war  broke 
out.  Indeed,  the  figures  for  the  Russian  Government 
contracts  are  not  available,  nor  would  it  be  anything 
but  misleading  to  attempt  to  include  such  in  a  cursory 
review  of  normal  trade  between  the  two  countries. 

The  development  of  motoring  in  Russia  is  largely  due 
to  the  Russian  Automobile  Club,  or  to  give  it  its  full 
title,  the  Imperial  Automobile  Club  of  Russia.  This  club, 
with  headquarters  in  Petrograd,  is  run  on  similar  fines  to 
our  R.A.C.,  and  has  always  been  to  the  fore  in  the  promo- 
tion of  races,  reliability  trials,  the  superintendence  of 
tests,  or  the  undertaking  of  any  duties  that  would  help 
the  motoring  industry  or  be  of  service  to  the  motoring 
community. 

213 


214  COMMERCIAL  EUSSIA 

The  Vauxhall  Company,  following  their  success  in  the 
1911  trial,  established  a  branch  at  Petrograd,  with  a 
competent  staff  of  mechanics,  and,  in  fulfilment  of  the 
terms  on  which  cars  are  sold  in  the  empire,  a  full  stock 
of  spare  parts  are  carried.  The  Austin  Company  also 
always  had  in  view  the  enormous  possibihties  of  trade 
in  Russia,  and  for  many  years  had  had  agents  there  who 
have  handled  the  Austin  car  and  found  it  a  lucrative  pro- 
position. The  sale  of  Austin  cars  to  a  steadily  increasing 
extent  soon  became  a  certainty.  One  of  the  earliest 
orders  received  was  from  H.I.H.  the  Grand  Duchess  Marie 
Pavlovna.  This  was  soon  followed  by  one  from  H.I.H.  the 
Grand  Duke  Gavril  Constantino vitch.  The  introduction 
thus  obtained  has  developed  in  subsequent  years  in  such 
a  manner  that,  prior  to  the  outbreak  of  war,  a  very  large 
contract  for  Petrograd  had  been  arranged  for.  Unfor- 
tunately, it  had  to  be  suspended  when  the  war  commenced. 

Austin  cars  have  taken  a  prominent  part  in  the  annual 
races  for  the  Tsar's  cup,  and  have  received  high  awards 
in  the  competition.  As  a  matter  of  more  than  passing 
interest  it  is  well  to  mention  here  that  the  Austin  car 
which  was  successful  in  competing  in  the  Austrian- Alpine 
Trial  in  July,  1914,  had  been  shipped  for  Petrograd  to 
take  part  in  the  1914  competition  when  the  latter  was 
cancelled  and  the  car  recalled  owing  to  sterner  business 
needing  attention. 

The  trade  which  Austin  cars  have  fostered  by  the  enter- 
prise of  the  company  has  had  its  reward  in  contracts  of 
much  importance  which  were  placed  by  the  Imperial 
Russian  Government  for  ambulance  chassis,  armoui'ed  cars, 
mobile  workshops,  spare  part  wagons,  oil  and  fuel  tank 
wagons,  transport  lorries,  mobile  kitchens,  etc.  Especi- 
ally notable  work  has  been  done  by  the  armoured  cars 
supphed  by  the  company. 

The  Daimler  Company  also  had  a  good  share  of  Russian 


MOTOE  CAES  215 

business  previous  to  the  outbreak  of  hostilities,  among 
their  customers  being  the  Empress  Dowager.  It  is  a  far 
cry  from  a  palace  to  a  prison,  but  among  the  contracts 
secured  by  the  Daimler  Company  was  the  supply  of  prison 
vafis  for  the  Petrograd  municipality.  At  the  last  Petro- 
grad  show  the  company  secured  a  gold  medal  for  their 
exhibit. 

Possibly  the  firm  of  D.  Napier  and  Son  have  more 
customers  among  the  Russian  aristocracy  than  any  other 
British  makers.  They  have  always  received  every  oppor- 
tunity to  foster  export  trade,  and  with  energetic  and 
capable  agents  have  more  than  held  their  own  against 
continental  competition. 

Eussian  manufacturers  have  taken  some  part,  though 
not  as  yet  a  large  one,  in  the  development  of  the  motor 
industry.  The  Pouzyreff  Company  of  Petrograd  intro- 
duced their  24-30  h.p.  machines  with  four  cylinders  and 
provided  with  four  speeds.  Then  in  1909  the  Fabrique  de 
Wagons  de  Chemin  de  Fer  of  Eiga  entered  the  field.  One 
of  their  first  productions  was  put  to  the  test  in  the  Petro- 
grad-Eiga  race  of  1909,  and  did  well.  Subsequently, 
under  the  Eusso-Baltique  Company,  a  larger  scale  of 
manufacture  was  put  into  operation,  and  this  company, 
just  before  the  outbreak  of  war,  was  turning  out  about 
three  hundred  chassis  a  year. 

In  all  the  world  there  is  no  other  market  which  offers 
greater  prospects  than  that  of  Eussia.  The  country  is 
in  the  early  stage  of  a  very  rapid  development  which, 
while  temporarily  diverted  from  its  normal  course,  must 
in  the  long  run  be  materially  accelerated  as  a  result  of 
the  war.  In  Eussia  we  have  a  country  with  an  area  of 
nearly  twenty-three  million  square  kilometres  and  a 
population  of  about  one  hundred  and  eighty  millions. 
After  the  war,  development  will  take  place  in  all  direc- 
tions.   New  railways  and  new  roads  will  be  built,  and 


216  COMMERCIAL  RUSSIA 

railways  and  roads  constructed  as  a  temporary  expedient 
for  military  purposes  will  be  rendered  permanent.  The 
passenger  transport  of  the  centres  of  population  will  be 
studied,  and  either  tramways  or  road  motor  vehicles 
will  have  to  be  adopted  in  large  numbers.  Meanwhile, 
industrial  enterprises  will  grow  apace,  but  despite  this 
it  must  be  a  very  long  time  before  the  country  will  be 
able  to  supply  her  own  requirements,  which  are  themselves 
growing  with  equal  rapidity.  The  inevitable  development 
should  bring  about  a  period  of  great  prosperity,  on  which 
will  naturally  follow  a  desire  for  greater  comfort  and 
luxury.  In  a  country  of  such  immense  extent,  comfort- 
able and  fast  means  of  transport  are  of  the  first  importance. 
Even  now  the  wealthier  members  of  the  farming  class 
use  motors  in  preference  to  vehicles  drawn  by  animals. 
It  remains  for  them  to  extend  their  experience  by  con- 
veying not  merely  themselves,  but  their  produce,  by 
more  modern  means,  and  by  using  machinery  in  every 
possible  way  in  connection  with  the  cultivation  of  the  soil. 

The  Petrograd  correspondent  of  the  Railway  Gazette 
says  that  while  it  is  quite  true  that,  considering  its  size, 
transport  facilities  in  Russia  are  practically  speaking 
undeveloped,  nevertheless  this  very  fact  gives  rise  to  an 
enormous  demand  for  motor  transport  which  would  other- 
wise be  non-existent.  As  regards  the  credit  side  of  the 
question,  there  is  no  doubt  at  all  that  unless  the  trader 
is  careless  business  can  be  done  in  Russia  without  the 
necessity  of  incurring  large  losses  in  the  way  of  bad  debts, 
added  to  which  the  present  result  of  the  war  has  been  to 
decrease  rather  than  increase  the  demand  for  extended 
terms  of  credit. 

Another  effect  of  the  war  has  been  to  open  the  eyes 
of  Russia  to  the  enormous  possibihties  of  motor  trans- 
port, and  one  of  the  most  promising  fields  brought  for- 
ward has  been  that  of  feeder  motor  services  for  the 


MOTOE  CARS  217 

railways.  Russia  is  such  a  huge  country  that  its  railway 
development  will  for  years  continue  to  be  that  of  the 
construction  of  main  Unes,  and  for  its  branch  hues  it 
must  rely  on  motor  transport.  Provided  attention  is 
paid  to  the  design  of  the  motors,  the  Russian  roads  offer 
no  serious  difficulty  to  the  satisfactory  working  of  such 
services.  In  general  the  points  that  must  be  borne  in 
mind  are  that  the  chassis  shall  have  a  very  high  road 
clearance,  that  the  frames  shall  be  extra  strong  in  con- 
struction, that  the  engine  power  shall  be  largely  increased, 
and  that  special  regard  should  be  paid  to  the  springing 
of  the  vehicles  and  the  sohdity  of  the  bodies,  owing  to  the 
much  heavier  strains  to  which  they  are  subjected  in  con- 
sequence of  the  bad  state  of  the  roads. 

Of  the  many  openings  for  motor  transport  the  following 
at  the  present  time  should  be  given  most  attention  : 

(1)  Feeder  services  for  railways.  Russian  railways  can 
be  classed  almost  invariably  as  main  hues,  and  there  are 
large  villages  and  towns  still  unconnected  with  any  line 
of  railway  by  anything  other  than  the  ordinary  roads. 
The  class  of  vehicles  demanded  for  this  service  are  : 

(a)  Extra  heavily  built  combined  passenger  and  goods 
vehicles  which  should  accommodate  about  twelve  people 
and  carry  at  the  same  time  from  30  cwts.  to  2  tons  of  goods. 

(6)  Three  to  five-ton  motor  lorries  for  the  carriage 
of  goods  only,  fitted  with  engines  capable  of  developing 
from  50  to  60  h.p. 

(c)  Fast  passenger  vehicles  holding  about  sixteen  passen- 
gers without  any  outside  accommodation. 

(2)  S fecial  services  to  mines,  engineering  works,  etc, 
lyircg  away  from  the  railway.  The  class  of  vehicles  de- 
manded are  a  combined  passenger  and  goods  vehicle 
carrying  from  six  to  eight  passengers  and  2  tons  of  goods  ; 
and  3  to  5-ton  lorries  for  goods  only. 

(3)  Delivery  of  goods  in  towns.    There  is  a  very  large 


218  COMMERCIAL  RUSSIA 

demand  in  connection  with  the  railways  for  dehvery  of 
goods  in  the  large  towns,  for  which  a  3-ton  motor  lorry 
will  probably  be  adopted  as  the  standard. 

(4)  Post  office  delivery  vans,  A  great  many  of  the  motor 
vehicles  previously  in  use  before  the  war  by  the  post 
offices  have  been  commandeered  for  military  purposes, 
and  there  is  a  large  and  urgent  demand  for  their  replace- 
ment by  high-speed  lorries  with  a  carrying  capacity  of 
1|  to  2  tons,  and  also  for  Hghter  vehicles. 

(5)  Toumig  cars.  There  is  a  very  large  demand  in 
Russia  for  touring  cars.  In  the  towns  the  demand  may  be 
divided  into  two  classes — one  for  a  very  expensively  built 
luxurious  touring  car  with  preferably  a  hmousine  body, 
and  the  other  for  a  cheap  strong  open  touring  car.  The 
middle-priced  vehicles  are  principally  demanded  outside 
the  large  cities. 

(6)  Motor  taxi-cabs.  Even  before  the  war  there  were 
comparatively  few  motor  taxi-cabs  in  use  in  Russia,  and 
this  was  very  noticeable  in  large  cities  Hke  Petrograd  and 
Moscow.  The  war  has  still  further  reduced  the  number  of 
vehicles  in  this  class  of  service,  while  the  demand  for 
them  has  very  considerably  increased  ;  and  after  the  war, 
when  means  can  be  found  to  satisfy  it,  the  large  Russian 
cities  will  ofier  enormous  scope  for  the  development  of 
the  motor  taxi-cab  trade. 

Summing  up  the  position  as  regards  the  motor  industry, 
the  demand  for  motor  transport  has  enormously  increased 
of  recent  years,  and  at  the  same  time  the  possibihty  of 
meeting  this  demand  has  since  1914  been  decreased  almost 
to  disappearance  by  the  size  of  the  mihtary  requirements. 

The  import  of  German  cars,  which  previously  held  the 
market,  has  been  entirely  stopped  by  the  war  and  the 
import  of  American  cars  has  been  almost  altogether  con- 
fined to  those  required  for  mihtary  purposes.  Russia  is 
anxious  to  place  her  custom  with  British  fiims,  and  will 


MOTOR  CAES  21d 

welcome  any  attempt  on  the  part  of  manufacturers  in 
this  country  to  develop  the  Russian  motor  trade.  She 
is  herself  building  six  motor-car  works,  of  which  three 
will  probably  work  on  English  models,  the  remaining 
three  being  divided  between  Italy,  France  and  America 
respectively.  Although  the  output  from  these  six  works 
will  be  fairly  considerable,  amounting  probably  to  some 
5000  cars  per  annum,  during  the  war  the  whole  and  after 
it  about  half  this  number  will  be  required  for  Government 
purposes,  and  the  remaining  half  will  fall  a  very  long  way 
short  of  supplying  the  Russian  demands. 

Of  all  the  openings  above  mentioned,  the  most  inter- 
esting is  that  which  concerns  the  use  of  commercial 
motor  vehicles  running  on  ordinary  roads  as  feeder  lines 
for  the  railways.  This  demands  the  use  of  a  more  or  less 
special  type  of  vehicle,  both  as  regards  the  chassis  and 
body,  as  the  former  must  be  fitted  with  heavy  high- 
powered  engines,  and  built  on  much  stronger  lines  than 
is  usual  in  British  practice.  The  design  of  these  offers 
British  firms  an  excellent  chance  of  entering  the  Russian 
motor-car  business  with  the  prospects  of  an  assured 
demand  and  if  any  firm  succeeds  in  putting  forward  a 
thoroughly  satisfactory  vehicle,  the  demand  will  be 
largely  increased,  as  many  years  must  elapse  before  the 
Russian  railway  department  can  turn  its  attention  to  the 
construction  of  feeder  lines  to  replace  these  motor  services. 
A  point  which  manufacturers,  in  deahng  with  this  prob- 
lem, must  bear  in  mind  is  the  fact  that  the  majority  of 
these  services  will  have  to  run  long  distances  without  any 
possibility  of  repair  other  than  that  which  can  be  carried 
out  by  the  driver  on  the  road,  and  especial  attention 
must,  therefore,  be  paid  to  both  simplicity  of  construc- 
tion, strength  of  working  parts  and  get-at-ability  of  the 
mechanism. 

The  Russian  climate  and  conditions  present  their  own 


220 


COMMERCIAL  RUSSIA 


problems,  and  fortunately  the  use  of  British  motor 
vehicles  during  the  war  on  the  Russian  front  has  given 
British  manufacturers  the  opportimity  of  thoroughly 
investigating  these  and  making  due  provision  for  them 
in  future  designs. 

Before  the  war  commenced  the  automobile  business 
was  more  or  less  concentrated  in  Petrograd,  Moscow,  Kiev, 
Riga  and  Kharkov,  and  the  following  table  shows  the 
approximate  sales  : 


Petrograd 
Moscow 
Kiev 
Kharkov 

2,600 

2,200 

1,000 

800 

Riga 

Poland 

In  other  States 

600 
1,500 
3,300 

Total 


12,000 


In  this  enumeration  the  military  automobiles  are  not 
included,  and  these  probably  numbered  about  1500  at 
the  outbreak  of  the  war. 

Concerning  the  cars  tabulated  above  the  majority  came 
from  Germany.  France  ranked  next  and  England  had 
a  fair  proportion.  A  good  many  also  came  from  Italy 
and  a  few  from  America. 

In  the  city  of  Petrograd  the  most  popular  car  was  the 
Benz,  with  the  Opel  ranking  second,  and  then  followed 
Renault,  Delaunay-Belleville,  Mercedes,  F.I.A.T.,  Metal- 
lurgique,  Vauxhall,  Itala,  Rolls-Royce,  Peugeot,  Lancia, 
Paiihard,  and  a  few  less  known  French  makes.  A  certain 
number  of  cars  are  also  turned  out  at  the  Russian  factory 
in  Riga. 

Trade  conditions  in  the  automobile  business  in  Russia 
have  been  very  unsatisfactory,  owing  to  the  absence  of 
agents  or  dealers  as  generally  understood.  Many  good 
firms  were  represented  by  people  who  regarded  auto- 


MOTOE  CARS  221 

mobiles  as  a  side  line  and  this  unsatisfactory  state  of 
affairs  led  to  the  establishment  of  manufacturers'  depots 
in  Russia  during  the  two  years  previous  to  the  war.  Much 
of  this  activity  was  the  result  of  German  far-sightedness, 
as  may  be  shown  by  the  example  of  the  Benz  Company, 
who  opened  a  branch  in  the  best  part  of  Petrograd,  adding 
repair  shops.  The  rent  for  the  building  amounted  to 
£2400  a  year,  and  at  the  outbreak  of  war  an  excellent 
business  was  being  done.  The  first  year  more  than  four 
hundred  cars  were  sold  and  large  inducements  were 
offered  to  the  clients.  Another  branch  was  situated  in 
Moscow,  and  was  also  doing  a  very  good  business  indeed. 

Almost  as  good  a  trade  was  being  done  by  the  Renault 
branch  in  Petrograd,  although  the  sales  were  slightly 
smaller  than  those  of  the  Benz.  In  1914  Renault  actually 
commenced  to  build  a  factory  in  Petrograd,  intending  to 
manufacture  cars  on  the  spot,  but,  of  course,  this  is  at 
present  operating  on  the  manufacture  of  munitions. 

Among  other  well-known  manufacturers  having  depots 
in  Petrograd  may  be  mentioned  Mercedes,  Delahaye, 
F.I.A.T.  and  Metallurgique. 

Many  people  are  unaware  of  the  existence  of  the  Russian 
Baltic  factory  of  Riga,  which  has  been  producing  railroad 
cars  and  commenced  the  manufacture  of  automobiles  in 
1899.  The  factory  has  been  favoured  by  many  large 
Government  orders,  and  at  the  start  of  the  war  was  build- 
ing complete  cars  without  the  need  for  importing  any 
parts.  Its  estimated  output  for  the  past  few  years  was 
between  three  hundred  to  five  hundred  cars  annually,  and 
its  most  recent  programme  consisted  of  two  models  of 
private  cars.  Only  experimental  lorries  have  been  built, 
and  the  work  of  the  factory  must  have  been  somewhat 
interfered  with  by  its  transference  from  Riga  to  the 
interior.  At  present  the  entire  output  is  taken  by  the 
Government  for  war  purposes. 


222  COMMERCIAI.  RUSSIA 

It  is  perhaps  surprising  that  the  number  of  cars  used 
in  Russia  should  be  so  small,  but  the  situation  is  ex- 
plained by  the  scarcity  of  State  roads  and  the  unsatis- 
factory conditions  of  sale  which  have  been  described. 
It  may  also  be  due  in  part  to  the  absence  of  any  large 
automobile  manufacturing  plants  in  Russia.  At  present 
there  are  only  22,000  miles  of  State  roads  in  all  Russia. 
They  are  situated  mostly  in  places  where  they  have  a 
military  value,  such  as  the  western  part  of  Russia,  in 
Poland,  in  the  Caucasus,  and  in  the  district  of  Moscow.  In 
addition  to  these  principal  State  roads  there  are  country 
roads  totalling  about  135,000  miles,  and  these  are  quite 
satisfactory  in  summer.  In  the  spring  and  winter  the 
majority  of  the  roads  are  impassable,  although  all-year 
traffic  is  possible  on  a  few.  The  reason  for  the  roads 
being  so  bad  is  that  the  money  available  for  their  im- 
provement has  been  insufficient.  The  Government  have 
been  too  preoccupied  to  develop  the  railroads,  but  the 
Duma  has  been  devoting  attention  to  roads  recently, 
and  it  is  expected  that  the  State  road  system  will  be 
extended  very  greatly  soon  after  the  war. 

At  present,  for  building  new  State  roads  and  repairing 
old  roads,  there  is  an  annual  appropriation  of  less  than 
£1,000,000,  and  two-thirds  of  this  is  given  to  the  roads 
having  mihtary  importance.  This,  of  course,  leaves  but 
a  small  sum  when  one  regards  the  vastness  of  the  road 
systems  really  required  by  Russia. 

The  use  of  automobiles  in  the  war  will  midoubtedly 
result  in  their  value  being  appreciated  much  more  widely, 
and  there  is,  therefore,  every  reason  to  anticipate  that 
the  building  of  new  State  roads  will  proceed  very  rapidly 
when  the  war  is  over.  The  Ministry  of  Ways  of  Com- 
munications has  already  worked  out  a  scheme  for  a  com- 
plete system  of  State  roads  interconnecting  with  new 
railroad  Unes  already  projected. 


XXI 

MACHINERY,  ELECTRICAL  AND 
ENGINEERING 

An  immense  field — Imports  before  the  war — Home  production — England's 
share  smallest— German  machinery — Electro-technical  goods— Tele- 
phones and  Telegraphs — Swiss  exports — Unlimited  demand. 

IF  the  possibilities  of  British  trade  with  Russia  after 
the  war  were  confined  to  machinery  and  electrical 
and  engineering  equipment,  it  would  open  up  a  field  so 
immense,  that  it  would  keep  our  factories  going  for  many 
years  to  come.  Statistics  of  former  trade  in  these  depart- 
ments, while  indicating  to  some  extent  the  opportunities 
afforded  by  displacing  the  previous  German  imports, 
only  touch  on  the  fringe  of  the  subject,  and  give  very 
httle  idea  of  the  potentialities  of  the  future.  In  the 
development  of  her  own  industries — and  this  will  be 
Russia's  most  important  task  after  the  war,  and  the  one 
to  which  her  leading  men  will  give  most  attention — ^there 
will  be  an  enormous  demand  for  everything  that  can  be 
included  in  factory  equipment  and  maintenance.  The 
building  of  railways,  the  increasing  facilities  at  the  ports, 
the  hundreds  of  municipal  enterprises,  including  water- 
works, sanitary  improvements,  tramways,  road  con- 
struction, electric  and  gas  lighting  and  fire  brigade  equip- 
ment, will  make  a  demand  for  hundreds  of  millions  ster- 
ling of  material.  The  following  figures  for  1913,  taken 
from  the  official  Russian  statistics,  indicate  the  growing 


224 


COMMERCIAL  RUSSIA 


demand  in  Russia  even  before  the  war,  and  also  the  ex- 
tent of  Grermany's  "  peaceful  penetration." 


Metals,  raw  and  half-finished  products 
Copper  and  alloys,  manufactured . 
Cast  iron,  manufactured 
Iron  and  steel,  manufactured  (pipes,  anchors, 
nails,  etc.)     ..... 

Tinned  and  enamelled  goods 

Iron  wire,  etc.   ..... 

Cables,  etc.       . 

Needles,  guns,  etc.     .... 

Machines,  unenumerated,  of  iron  and  steel 
Gas  and  oil  motors    .         .         .         . 

Steam-engines  ..... 

Pumps — hand  fire-engines 

Sewing  machines        .... 

Metal- working  machines     . 
Electrical  machines   .... 

Agricultural  implements     . 

Machine  parts  of  cast-iron,  iron  and  steel 

Instruments,  optical,  etc.  . 

Electrical  switches,  etc. 

„      meters       .... 

Incandescent  metal-wire  lamps  . 
Cycles      ..... 

Parts  of  carriages,  etc. 

Automobiles  for  four  or  more  passengers 

Goods  automobiles,  etc. 

Aggregate       . 


Aggregate 

From 

imports 

Gei-many 

Roubles 

Roubles 

56,377,822 

30,280,845 

10,384,245 

9,131,874 

4,340,080 

3,236,451 

20,641,901 

16,330,760 

5,855,016 

5,152,417 

2,281,129 

1,448,856 

4,836,275 

4,063,417 

13,767,425 

9,414,947 

36,403,361 

28,400,098 

10,390,131 

5,716,678 

5,894,885 

2,966,945 

7,696,127 

6,733,853 

9,941,019 

5,296,690 

12,787,605 

10,658,126 

9,724,948 

8,605,365 

24,789,720 

9,924,716 

15,796,213 

11,653,331 

5,169,167 

4,419,426 

6,808,319 

6,206,244 

1,492,645 

1,455,910 

4,431,437 

3,847,769 

1,884,541 

1,603,801 

2,135,022 

1,558,984 

14,759,379 

11,778,865 

1,453,586 

1,162,635 

352,669,000 

235,930,000 

Taking  the  aggregate  of  the  ten  different  sections, 
Germany  figures  with  a  total  of  652,209,000  roubles,  out 
of  total  imports  amounting  to  1,374,032,000  roubles,  of 
which  173,012,000  roubles  came  from  England  and 
79,092,000  roubles  from  America.  Since  1913  the  Eussian 
imports  have  increased  102  per  cent. — from  681,670,000 
roubles  to  the  above  figures — ^whilst  the  share  falKng  to 
Germany  has  increased  169  per  cent.,  that  of  England 


MACHINERY  225 

53  per  cent.,  and  that  of  America  25  per  cent.  ;  Sweden's 
export  to  Russia  has  increased  257  per  cent,  (in  1913, 
16,926,000  roubles),  and  Denmark's  121  per  cent,  (in 
1913,  12,867,000  roubles).  It  should  also  be  mentioned 
that  in  the  section  for  chemical  industry,  Germany  figured 
with  40,008,421  roubles,  or  66  per  cent,  of  the  aggregate. 
The  whole  question  has  been  treated  exhaustively  by 
Engineer  P.  Gureivitch  in  the  Electrichestvo,  of  Petrograd, 
the  Electrical  Review  and  other  technical  journals,  and 
much  of  the  information  in  this  chapter  is  drawn  from  those 
sources.  Although  the  Russian  machinery  trade  can  look 
back  on  fifty  years  of  development,  it  is,  he  says,  one  of 
the  least  developed  industrial  branches  in  Russia.  The 
foundation  of  this  industry  was  laid  in  the  sixties  of  the 
last  century,  after  the  emancipation  of  the  Russian 
peasants  from  serfdom  in  1861  had  given  the  first  impulse 
to  Russia's  conversion  from  a  purely  agricultural  to  a 
mixed  agricultural  and  industrial  state. 

As  the  country  still  possessed  no  important  manu- 
facturing industries,  naturally  its  requirements  in 
machinery  were  very  small.  The  most  important  cus- 
tomer for  many  decades  was,  therefore,  the  State,  which 
required  great  quantities  of  railway  materials,  locomo- 
tives, wagons,  etc.,  for  the  railways,  which  were  built 
by  It,  whilst  considerable  orders  were  given  for  the  Army 
and  Navy.  Hence  the  whole  Russian  machinery  trade 
was  chiefly  founded  for  the  requirements  of  the  State, 
and  these  enterprises,  founded  by  the  support  of  the 
State  and  with  promises  of  Government  orders,  took  very 
Httle  interest  in  the  requirements  of  the  general  market 
and  the  private  buyer. 

This  far-reaching  dependence  on  the  support  of  the 
Russian  War  Ministry  and  of  the  State  Railway  Depart- 
ment checked  the  development  of  the  Russian  machinery 
and  iron  industry.     This  industry  made   no   effort   to 


t 


226 


CO]\IMERCIAL  RUSSIA 


advance,  and  remained,  in  comparison  with  the  West 
European  machinery  trade,  in  a  backward  condition,  as 
the  impulse  of  rivalry  and  driving  power  of  competition 
were  missing.  State  contracts  at  very  high  prices  were 
assured,  and  in  consequence  of  the  demands  caused  by  the 
development  of  the  Russian  State  Railways  there  was  no 
lack  of  orders  for  many  years.  But  when  the  Russian 
State  was  obhged  to  lessen  its  orders  for  various  causes, 
a  crisis  occurred,  as  the  Russian  factories,  which  were 
only  equipped  for  the  execution  of  State  orders,  could  not 
suddenly  change  the  nature  of  their  productions,  erect 
other  machines  and,  for  instance,  produce,  instead  of 
railway  material,  the  small  iron  ware  for  which  the  de- 
mands of  the  home  market  had  always  been  large. 

The  consequence  of  this  one-sided  development  of  the 
industry  were  that  whilst  Russia  could  itself,  under 
normal  conditions,  easily  cover  the  requirements  of  the 
home  market  with  regard  to  locomotives,  rolling  stock, 
rails,  etc.,  all  other  necessary  machines  and  apparatus 
had  to  be,  for  a  great  part — over  40  per  cent,  of  the 
demand — bought  in  foreign  countries. 

Many  other  causes  also  checked  the  development  of 
the  industry,  with  the  consequence  that  Russia  has 
become  the  best  market  for  the  West  European  and 
American  manufacturers  of  machinery.  The  following 
table  of  Russian  statistics  gives  closer  particulars  of  the 
development  of  machinery  importation  to  Russia  in  the 
last  three  years  : 


Years 


]911 

1912 
1913 


Machinery  imports 
to  Russia 


Ronbles 

147,000,000 
149,200,000 
163,700,000 


j      Machinery 
Total  imports  of  all       1  '^„P^'^^A°.f^/' 
goods  £,  Russia  i   -t^'rS""' 


Roubles 

1,022,700,000 
1,034,600,000 
1,220,500,000 


Per  cent. 

14-4 
14-4 
13-4 


With  regard  to  Russian  home  production  of  machinery. 


MACHINERY 


227 


according  to  the  statistics  of  the  Eussian  Ministry  of 
Finance  in  1900,  the  whole  of  the  State  and  private  manu- 
facturers produced  various  machines  to  the  value  of 
52,000,000  roubles,  on  the  making  of  which  49,000  work- 
men were  engaged.  In  the  year  1908  the  number  of  work- 
men increased  to  110,000,  and  the  value  of  machinery  to 
140,000,000  roubles.  Thus  the  value  of  machines  manu- 
factured in  Russia  increased  in  eight  years  by  173  per 
cent.,  and  the  number  of  workmen  by  124-5  per  cent. 

Unfortunately,  no  reliable  statistics  about  this  industry 
have  been  issued  during  the  last  few  years,  but  an  expert 
in  this  question.  Professor  N.  Sawwin,  calculated  the 
value  of  machines  produced  in  Russia  in  1912  to  be 
210,000,000  roubles.  If  one  adds  to  this  sum  the  value  of 
machines  imported  in  1912  from  abroad,  we  find  that 
Russia's  demands  for  machinery  in  the  year  1912  reached 
a  value  of  360,000,000  roubles  (say,  £38,000,000). 

It  will  be  interesting  to  see  how  this  considerable 
volume  of  machinery  is  divided  between  those  countries 
which  are  considered  to  be  the  chief  exporters  for  the 
world's  markets. 

According  to  the  official  statistics  of  these  countries, 
their  machinery  exports  in  1913,  exclusive  of  motor-cars 
and  electrical  machines,  were  as  follows.  The  export 
totals  of  these  two  last-named  groups  of  machines  are 
separately  given : 


England 

Germany 

Switzerland 


Exports  of  machinery 
to  Russia 


3,885,664 
59,762,000  E. 
4,402,000  K. 


Total  of  machinery 
exports 


34,743,000 
33,450,000  R. 
3,046,000  R. 


Exports  to  Russia 
in  per  cent,  of 
total  exports 


Per  cent, 

11-2 
19-2 
15-3 


Total  of  machinery  exports,  £97,599,000. 


These  figures  show  that  Great  Britain's  share  in  the 
Eussian  market  for  machinery  was  the  smallest ;    while 


228  COMMEECIAL  RUSSIA 

nearly  one-fifth  of  the  total  German  and  one-sixth  of  the 
total  Swiss  machinery  exports  went  to  Russia,  only  11-2 
per  cent,  of  the  whole  of  Great  Britain's  machinery  trade 
was  done  with  Russia. 

The  statistical  figures  of  the  exporting  countries  have 
been  intentionally  used  in  the  above  table  instead  of  the 
Russian  statistical  figures,  as  the  latter  are,  unfortunately, 
with  regard  to  the  origin  of  the  imported  goods,  very 
inaccurate  and  unrehable.  It  is  certain  that  the  Russian 
statistical  figures  of  imports  from  Germany  into  Russia 
are  exaggerated,  while  the  figures  of  imports  from  the 
United  Kingdom  and  other  countries  are  too  low.  The 
reason  of  this  is  that  goods  in  transit  through  Germany 
were  generally  registered  in  the  Russian  statistics  as  Ger- 
man goods,  although  they  were  of  British,  American, 
Smss,  Belgian,  etc.,  origin,  because  in  Russia,  as  in 
England,  the  origin  of  goods  is  registered  according  to  the 
port  of  lading.  As  has  already  been  shown  above,  Ger- 
many exported  to  Russia  19-2  per  cent,  of  its  total 
machinery  exports.  Moreover,  Russia  occupied  the  first 
place  among  all  European  countries,  as  importer  of  Ger- 
man machinery,  as  Germany  exported  to  Austria  in  1913 
only  11  per  cent,  of  its  total  machinery  export,  10  per 
cent,  to  France,  7  per  cent,  to  England,  and  5  per  cent,  to 
Belgiimi,  Holland  and  Italy  respectively.  The  German 
machinery  export  to  Russia  increased  every  year  very 
considerably.  In  1909  it  amounted — electrical  machinery 
and  motor-cars  not  included — ^to  M.49,500,000  only,  in 
1910  it  rose  to  M.65,500,000,  in  1911  to  M.84,500,000,  and 
in  1913  reached  M.  129,900,000.  In  five  years  it  increased 
more  than  two-and-a-half  times,  or  250  per  cent.,  so  that 
it  was  £2,400,000,  or  64  per  cent,  higher  than  the  British 
export  of  machinery  to  Russia. 

According  to  Russian  statistics,  the  German  machinery 
trade  with  Russia  was,  of  course,  as  shown  above,  still 


MACHINEEY  229 

larger.  In  the  years  1901-1905  the  average  total 
machinery  trade  with  Eussia  amounted  to  30,500,000  or 
53-8  per  cent.  In  the  years  1906-1910  the  total  trade  to 
Russia  rose  to  84,200,000  roubles,  on  an  average,  per  year, 
and  Germany's  share  increased  to  56*5  per  cent.  Ger- 
many's share  in  the  import  of  steam-engines,  according 
to  Russian  statistics,  amounted  to  as  much  as  76  per  cent., 
the  share  in  import  of  pumps  to  82  per  cent.,  and  in  metal- 
working  machines  to  81  per  cent.  In  reality,  however, 
the  imports  from  Germany,  as  already  mentioned  above, 
were  somewhat  smaller.  For  instance,  the  very  con- 
siderable Swiss  export  of  dynamos  to  Russia  to  the  value 
of  3,278,000  f.  was  hardly  mentioned  in  the  Russian 
statistics  as  coming  from  Switzerland,  but  was  for  the 
most  part  included  in  the  imports  from  Germany. 

The  interruption  of  the  German  importation  of  electro- 
technical  goods  into  Russia,  which  grew  from  14,140,000 
marks  in  1909  to  34,505,000  marks'  value  in  1913,  con- 
strained Russian  importers  to  turn  for  such  goods  to 
other  countries,  particularly  England.  Unfortunately, 
however,  while  Russian  buyers,  faced  with  the  necessity 
of  filhng  up  the  blank  that  had  been  formed,  are  greatly 
interested  in  English  goods,  the  English  electro-technical 
industry — with  a  few  exceptions — does  not  feel  any 
special  need  of  new  markets,  and,  therefore,  has  not 
shown  any  particular  interest  in  the  Russian  market. 
The  lack  of  interest  may  be  partly  due  to  temporary  war 
conditions,  but  it  is  also  based,  unfortunately,  on  a  variety 
of  causes,  which  are  not  of  a  transitory  nature.  The  causes 
of  the  relatively  feeble  interest  of  the  English  electrical 
industry  in  the  Russian  market  are  the  following :  Electri- 
cal development  in  England  itself  is  not  particularly 
large  compared  with  that  of  other  countries.  This  is  ex- 
plained largely  by  the  great  prevalence  of  gas-works  in 
the  country.    England,  with  its  cheap  coal,  as  is  known, 


230  COMMERCIAL  RUSSIA 

was  the  pioneer  in  the  business  of  gas-lighting.  At  the 
present  time  there  are  1,622  gas-works  in  England,  whilst 
in  all  Grermany  there  are  but  552 ;  in  Russia  but  22. 
Further,  in  Paris  the  output  of  gas  per  annum  is  500,000,00 
cubic  metres ;  in  BerUn,  300,000,000 ;  in  Vienna, 
120,000,000;  in  Warsaw,  36,000,000;  in  Petrograd, 
19,000,000  ;  and  in  Moscow,  13,000,000.  But  every  year 
the  output  of  gas  in  London  makes  900,000,00  cubic 
metres ;  that  is  to  say,  as  much  as  in  Paris,  Berlin  and 
Vienna.  Naturally,  owing  to  this  great  prevalence  of  gas- 
lighting  in  England,  electric  Hghting  is  by  so  much  less 
developed.  The  use  of  electric  power  in  London  was 
llOkw.-hr.  per  head  of  the  population  in  1910-11  ;  in 
Berhn  in  1911-12  it  was  170  kw.-hr.  ;  in  Chicago  in  1911, 
310  kw.-hr.,  and  so  on. 

The  development  of  the  English  electric  stations  has 
been  hindered  not  only  by  the  number  of  gas-works,  but 
partly,  also,  by  the  fact  that  in  England  about  55  per  cent. 
of  aU  the  stations  are  under  municipal  control,  whilst  in 
Germany  25  per  cent,  only  of  all  the  electric  stations 
belong  to  municipahties.  The  small  productivity  of 
electric  stations  in  London  is  explained  to  a  certain  extent 
by  the  fact  that  they  are  extraordinarily  diverse.  This 
great  drawback  of  variety  is  also  the  defect  that  afflicts 
Petrograd  in  respect  to  its  electric-power  supply.  The  use 
of  electric  equipment  in  England  per  inhabitant,  accord- 
ing to  a  German  estimate,  amounts  to  about  2  roubles 
83  kopecks  per  head,  while  each  inhabitant  of  Germany 
spends  on  electro-technical  apparatus  7  roubles  36  kopecks. 
But  this  relatively  small  quantity  of  electro-technical 
apparatus  used  in  England  was  not  all  made  in  England 
itself.  The  importation  during  the  past  two  years  from 
Germany  alone  of  electro-technical  apparatus  per  annum 
reached  34,000,000  marks  value,  which  makes  about  one- 
fifth  of  the  total  quantity  of  electro-technical  apparatus 


MACHINERY  231 

used  in  England  ;  whilst  in  Germany,  with  an  annual  pro- 
duction of  1,200,000,000  marks,  there  was  an  export  in 
1912  of  272,000,000  marks  value  (that  is,  22-5  per  cent, 
of  the  production),  and  in  1913  of  330,000,000  marks 
value  (an  increase  in  the  export  of  21-3  per  cent.),  and  the 
export  of  electro-technical  goods  from  England  worked 
out  in  thousands  of  roubles  as  follows : 


Total  electro-technical  goods 
Electrical  machines 


1907 


34,366 
9,292 


1911 


45,619 
16,836 


1912  1913 


51,513     71,477 
18,400  !  21,469 


It  is  to  be  observed  in  connection  with  this,  that  the 
year  1913  was  a  very  satisfactory  one  for  the  English 
electro-technical  industry,  for  its  export,  in  comparison 
with  1912,  rose  by  nearly  40  per  cent.,  whilst  the  increase 
in  the  German  export  compared  with  1912  improved  only 
by  21-3  percent. 

The  cable  industry  in  England  is  very  highly  developed, 
and  is  one  of  the  oldest  and  most  flourishing  branches  of 
the  electro-technical  industry.  The  great  consumption 
in  England  of  cables  is  explained  particularly  by  the 
submarine  telegraph  lines,  and  so  on.  Thus  in  1913  the 
export  of  cables  made  nearly  half,  or  47  per  cent,  of 
the  total  English  exportation  of  electro-technical  goods, 
whilst  the  value  of  the  cables  exported  amounted  to 
£3,577,663  sterling.  Submarine  cables  alone  were  ex- 
ported to  the  value  of  £1,903,915  ;  in  other  words,  about 
a  quarter  of  the  total  English  export  (to  be  exact,  25-2  per 
cent.)  of  her  electro-technical  goods  was  made  up  of  sub- 
marine cables.  For  Russia,  however,  this  extraordinary 
development  of  a  branch  of  the  English  electro-technical 
industry  in  respect  to  changing  over  from  importation 
from  Germany  is  not  of  much  importance,  for,  thanks  to 
the  high  protective  tariff  on  cables  in  Russia  for  some 
years  back,  with  the  active  co-operation  of  foreign  capital, 


232  COMMERCIAL  RUSSIA 

this  has  been  so  far  developed  that  nearly  all  the  con- 
sumption in  cables  and  insulated  wire  can  be  covered  by 
the  production  of  Russian  factories,  at  the  head  of  which 
stands  the  United  Cable  Factories  of  Petrograd,  with  a 
capital  of  6,000,000  roubles  (the  last  dividend  was  15  per 
cent.),  and  the  Kolchugin  Latten  and  Copper  RolHng 
Works  Company,  at  Keleroii  Station,  Northern  Railway, 
the  production  of  which  in  the  near  future  will  probably 
increase,  for  the  capital  of  this  company  was  lately  in- 
creased from  6,000,000  to  10,000,000  roubles.  The  im- 
portation of  cables  into  Russia  reached  in  1913  155,000 
roubles  value,  whilst  from  Germany  the  importation 
amounted  to  81,400  roubles. 

Russia  does  not  require  much  of  EngHsh  telephone 
and  telegraph  apparatus,  the  exportation  of  which  from 
England  in  1913  was  £290,279  sterhng  value.  As  the 
chief  consumer  of  each  apparatus  in  Russia  is  the  Post 
Office  Department,  which  orders  them  exclusively  in 
Russia,  the  product!  jn  of  these  apparatus  has  so  far 
developed  that  the  needs  of  the  country  can  be  supplied 
by  existing  Russian  factories,  at  the  head  of  which  stand 
the  Russian  L.  M.  Ericcson  and  Co.,  in  Petrograd,  which 
recently  increased  its  capital  from  2,000,000  to  4,000,000 
roubles  ;  the  Russian  Siemens  and  Halske  Co.,  capital 
5,600,000  roubles,  latest  di\ddend  6  per  cent.  ;  and  the 
N.  K.  Geisler  Co.,  of  Petrograd,  1,000,000  roubles  capital, 
latest  dividend  12  per  cent. 

The  importation  of  telegraph  and  telephone  apparatus 
in  1913,  according  to  Russian  statistics  given  in  the 
EleJctrichestvo,  makes  a  total  of  only  363,000  roubles. 
These  figures,  however,  do  not  agree  with  the  German 
statistics,  according  to  which  in  1913  there  was  exported 
from  Germany  to  Russia  telegraph  apparatus  to  the  value 
of  188,000  marks,  and  telephone  apparatus  to  the  value 
of  1,079,000  marks;    total,  1,267,000  marks,  or  583,000 


MACHINEKY  233 

roubles.  In  1912,  the  export  from  Germany  to  Kussia  of 
these  apparatus  reached  a  total  of  562,000  roubles,  whilst, 
according  to  Russian  statistics,  this  importation  of  tele- 
graphic and  telephonic  apparatus  was  in  1912  only  240,000 
roubles.  Since  German  statistics  are  generally  very  exact, 
we  must  suppose  that  part  of  the  imported  telegraphic 
and  telephonic  apparatus  from  Germany  are  entered  in 
the  Russian  import  list  under  some  other  heading.  Already 
the  export  alone  from  Germany  into  Russia  is  more  than 
one-and-a-half  times  the  whole  Russian  importation 
shown  in  the  Russian  statistics ;  while  according  to 
Russian  statistics,  in  1912  there  was  imported  from  Ger- 
many only  half  of  the  total  quantity  of  imported  tele- 
graphic and  telephonic  apparatus,  one-third  being  im- 
ported from  Sweden  and  one-sixth  from  other  countries. 

The  acquisition  of  English  carbons  for  arc  lamps,  for 
which  in  Russia,  in  consequence  of  the  interrupted  im- 
ports from  Germany  (amounting  in  1913  to  447,000  marks' 
value),  at  present  there  is  a  great  want,  unfortunately 
cannot  be  counted  on.  In  England  the  production  of 
carbons  for  arc  lamps  is  even  less  developed  than  in  Russia 
since  there  is  only  one  factory  of  the  kind.  In  view  of 
this  cessation  of  imports  of  carbons  from  Germany,  the 
exportation  of  such  from  England  was  forbidden  with  the 
opening  of  hostilities,  so  that  England  itself  imports 
carbons  from  Sweden,  Switzerland,  and  so  on.  In  any 
case,  the  export  of  carbons  from  England  in  1913  reached 
a  value  of  only  £10,064.  England's  exportation  of  incan- 
descent lamps  is  also  small.  In  1913  England's  export 
made  £152,456  sterling  value.  The  total  EngHsh  export 
of  incandescent  lamps  was  less  than  the  German  export  of 
these  lamps  to  Russia  alone.  In  1913,  according  to  Ger- 
man statistics,  there  were  exported  to  Russia  7,669,105 
lamps  with  metal  filament,  value  7,296,000  marks,  and 
1,539,586   lamps  with   carbon  filaments,   value   768,000 


234  COMMERCIAL  RUSSIA 

marks,  total  8,084,000  marks,  equal  to  3,709,000  roubles. 
In  1912  this  item  was  even  larger,  viz.  8,854,000  marks 
for  metal  filament  and  617,000  marks  for  carbon  filament, 
total  9,471,000  marks.  Again,  the  German  statistics  do 
not  agree  with  the  Russian,  for  according  to  the  latter 
the  total  Russian  importation  of  incandescent  lamps  was 
3,849,000  roubles  in  1912. 

The  feeble  development  of  English  production  of  in- 
candescent lamps  may  be  partly  explained  by  the  fact  that 
only  two  EngHsh  factories  of  electric  lamps  work  with 
Enghsh  bulbs.  All  the  others  obtain  theirs  from  the 
Continent,  which  certainly  makes  the  production  dearer. 
The  last  fact  is  seen  also  in  many  other  branches  of  Eng- 
lish electrical  industry,  particularly  in  the  production  of 
various  equipment  material  such  as  porcelain,  glass  goods, 
etc.,  which  might  often,  indeed,  be  made  in  England  ; 
but,  unfortunately,  these  auxiliary  branches  of  the 
electro-technical  industry  are  not  sufficiently  developed 
in  England.  The  value  of  the  English  exportation  of  arc 
lamps  and  projectors  was  only  £14,512  in  1913,  whilst 
into  Russia  alone  Germany  exported  in  that  year  12,369 
arc  lamps,  valued  at  652,000  marks  ;  parts  of  arc  lamps 
valued  at  79,000  marks  ;  and  projectors  valued  at  500,000 
marks;  total,  1,231,000  marks.  England  exported  in 
1913  £51,828  sterling  value  in  parts  of  arc  and  incan- 
descent lamps,  including  £19,737  value  to  Russia.  Electric 
batteries  and  accumulators  in  that  year  were  exported 
by  England  to  the  value  of  £226,325  ;  but  for  Russia 
this  branch  of  English  electro-technical  industry  is,  again, 
of  but  little  importance,  for  the  production  of  accumula- 
tors in  the  Russian  factories  can  now  be  almost  entirely 
covered  by  the  national  workshops.  The  importation  of 
accumulators,  according  to  Russian  statistics,  made  in 
1913  55,000  roubles  value  only,  but  the  importation  of 
galvanic   batteries,    not   specially   indicated   in   Russian 


MACHINERY  235 

statistics,  from  Germany  alone,  according  to  German 
statistics,  made  a  value  of  340,000  marks. 

Respecting  the  important  group  of  electro-technical 
manufactures  which  is  indicated  in  English  statistics 
under  the  title  "  not  specially  named  manufactures  and 
apparatus  for  electro-technicians,"  with  a  total  exporta- 
tion of  £1,063,146  sterling,  Russia  received  £16,007 
sterling  ;  that  is  scarcely  1|  per  cent,  of  the  total  export. 
In  this  group,  besides  various  ornamental  materials  in 
which  England  can  scarcely  hope  to  compete  in  Russia 
with  other  countries,  there  are  also  electrical  measuring 
apparatus,  meters,  etc.  The  production  of  these  instru- 
ments in  England  is  considerably  advanced,  and  their 
export  into  Russia  might  be  increased.  In  view  of  Russia's 
great  necessity  it  increased  considerably  in  1914. 

Of  the  electro-technical  manufactures  under  the  above 
group,  Russia  imported  in  1913  from  Germany  alone 
h.t.  electrical  apparatus,  8,967,000  marks,  against 
5,431,000  marks  in  1912.  Electric  apparatus  for  heating 
etc.,  321,000  marks  ;  electric  signalUng  apparatus,  667,000 
marks ;  electro-medical  apparatus,  894,000  marks  ;  insu- 
lation tubes,  273,000  marks  ;  wireless  telegraph  apparatus, 
111,000  marks  ;  electric  measuring  apparatus,  4,247,000 
marks  (against  3,143,000  marks  in  1912)  ;  insulating 
articles  in  asbestos,  mica,  etc.,  76,000  marks  ;  electrodes, 
173,000  marks  ;  or  a  total  of  35,729,000  marks. 

The  first  position,  after  the  cable  industry,  in  England 
is  occupied  by  the  production  of  electrical  machines  ; 
therefore  this  branch  is  more  fully  dealt  with,  especially 
as  in  the  Russian  importation  of  electro-technical  pro- 
ducts, dynamo  machines  and  electric  motors  occupy  the 
first  place.  Therefore,  the  possibility  of  increasing  the 
importation  of  electrical  machines  from  England  becomes 
a  question  of  considerable  interest  to  Russian  buyers  of 
that  class  of  goods.  , 


236  COmiERCIAL  RUSSIA 

The  total  export  of  electric  generators  and  motors  to 
Russia,  according  to  the  official  statistics  of  England, 
Grermany  and  Switzerland,  was  valued  at  5,440,000  roubles ; 
but  according  to  Russian  statistics,  as  pubhshed  in  the 
Elektrichestvo,  the  importation  thereof  made  9,595,000 
roubles.  If  we  add  to  the  5,440,000  roubles  the  value  of 
the  importation  of  electrical  machines  from  Austria, 
Belgium,  France  and  Switzerland,  which  made  in  1912 
only  7  per  cent,  of  the  total  importation,  then  this  sum 
would  be  only  sHghtly  increased.  It  remains,  therefore, 
to  suppose  that  under  the  heading  electrical  machines 
there  is  included  in  the  Russian  statistics,  besides  dynamo 
machines  and  electro-motors,  all  other  machines  driven 
by  electric  current,  for  example,  electro-magnetic  separa- 
tors, and  so  on.  Part  of  the  difference  may  still  be  ex- 
plained by  the  fact  that  Germany,  Switzerland,  England 
and  other  exporting  countries  give  the  export  price,  whilst 
the  Russian  statistics  report  the  import  price,  that  is, 
the  price  of  the  exporting  country,  plus  the  cost  of  trans- 
port, insurance,  etc.  But  certainly  the  difference  of  nearly 
4,000,000  roubles  is  not  so  explained,  and  it  is  regrettable 
that  owing  to  inaccuracies  in  the  figures  in  the  Russian 
statistics  the  actual  exchange  of  goods  is  confused,  and 
one  is  led  (by  using  Russian  statistical  data)  to  incorrect 
conclusions.  According  to  Russian  data,  for  example, 
the  importation  of  dynamo  machines  and  electro-motors 
is  of  almost  twice  the  value  shown  in  foreign  statistics. 
The  difference,  in  fact,  is  nearly  half  a  million  roubles 
more,  for  in  the  German  export  of  electrical  machines  is 
added  also  the  importation  of  armatures,  commutators, 
etc.,  which  parts  in  the  Russian  statistics  are  classified 
separately,  although  to  a  very  much  reduced  extent  com- 
pared with  German  statistics. 

Taking  advantage  of  the  occasion,  we  quote  one  more 
inexactitude  in  the  Russian  statistics.     These  describe 


MACHINEEY  237 

as  German  goods  many  articles  of  English,  Swiss  and 
other  origin,  but  imported  over  German  railways  because 
of  the  intermediate  position  of  Germany,  and  the  same 
appUes  to  all  goods  arriving  by  steamer  from  Hamburg, 
which  were  described  in  Kussia  as  German  goods,  although 
they  may  be  of  foreign  origin,  and  only  the  last  part  of 
the  way  has  been  covered  on  a  German  steamer.  Thanks 
to  the  foregoing,  the  importation  of  electrical  machines 
from  Switzerland,  which  made  the  soUd  sum  of  1,250,000 
roubles,  by  no  means  corresponds  to  the  Eussian  statistics. 
As  these  machines  were  carried  through  Germany,  they 
were  described  as  German  machines.  Although,  in  fact, 
the  importation  of  these  machines  from  Switzerland  is 
almost  twice  as  large  as  from  England,  in  the  Elektrichestvo 
table  they  are  not  noted  at  all,  whilst  the  importation 
from  Sweden,  making  only  one-tenth  of  the  importation 
from  England,  is  correctly  described,  since  Swedish 
machines  do  not  pass  in  transit  through  any  other  country. 
It  may  therefore  be  said  with  confidence  that  the  im- 
portation of  electro-technical  machines  from  Germany  is 
exaggerated  in  the  Russian  statistics,  and  the  importa- 
tion from  other  countries  is  underestimated.  The  ques- 
tion of  the  introduction  of  uniform  statistics  in  all  coun- 
tries has  been  near  to  realisation  not  long  before  the  war, 
for  on  the  initiative  of  the  Belgian  Government,  repre- 
sentatives of  twenty-nine  Powers,  including  Russia,  were 
to  meet  in  Brussels  for  the  preparation  of  uniform 
statistical  reports,  but  on  account  of  the  war,  this  con- 
gress was  not  held.  It  is  hoped,  however,  that  this 
important  question  for  making  plain  the  real  exchange 
of  goods  of  various  countries  and  the  part  they  take  in 
the  world's  business  will  be  duly  considered  after  the 
war. 

Following  this  sHght  digression,  made  in  view  of  the 
importance  of  statistics  for  establishing  the  real  importa- 


238  COIIMERCIAL  RUSSIA 

tion  of  foreign  electrical  goods  into  Russia  from  foreign 
countries,  we  return,  says  the  writer,  to  the  original  point. 

From  the  foregoing  particulars  on  the  importation  of 
electrical  machines  into  Russia,  it  follows  that  the  Russian 
market  for  EngHsh  manufacturers  of  dynamo  machines 
and  electro-motors  was  not  an  important  one  before  the 
war.  Whilst  Germany  sent  in  1913  into  Russia  12-6  per 
cent,  of  all  her  export  of  electrical  machines,  totalling, 
with  armatures  and  commutators,  7,867,000  marks, 
England  sent  into  Russia  only  2-7  per  cent,  of  its  total 
export  of  these  machines.  Even  Switzerland  exported 
these  machines  to  Russia  to  twice  as  great  an  extent  as 
England.  Germany,  on  the  other  hand,  exported  six  and 
a  half  times  as  many  as  England.  Meantime,  dynamo 
machines  and  electro-motors  happen  to  be  that  depart- 
ment in  which  England,  previous  to  the  war,  could  com- 
pete more  or  less  successfully  with  Germany  on  the  Russian 
market. 

In  the  distribution  of  material  included  in  the  EngHsh 
official  statistics,  the  countries  that  are  buyers  of  English 
electro-technical  industrial  manufactures  may  be  divided 
into  four  groups.  In  the  first  are  the  EngHsh  colonies, 
AustraHa,  India,  South  Africa,  Canada,  etc.  In  the 
second.  South  American  RepubHcs.  In  the  third,  Trans- 
Oceanic  countries,  Japan,  China,  United  States,  etc. ;  and 
in  the  last,  European  countries.  The  centre  of  gravity 
of  EngHsh  exports  Hes  first  in  the  English  colonies,  whence 
over  half  of  aU  the  EngHsh  electro-technical  manufactures 
are  exported.  One-seventh  of  this  export  goes  to  South 
America  ;  eleven-hundredths  to  Trans-Oceanic  countries, 
and  one-tenth  to  Europe.  The  stronger  the  competition 
of  other  countries  was  on  the  European  market,  and  the 
more  difi&cult  became  the  export  there,  the  less  interest 
did  the  English  exporter  take  in  it ;  because  for  them, 
until  recently,  there  was  an  immense  market  in  the  Eng- 


MACHINERY  239 

lish  colonies,  where  the  English  have  a  variety  of  advan- 
tages compared  with  other  competitors.  For  export  into 
these  countries,  the  English  exporter  does  not  require 
to  learn  foreign  languages,  and  for  the  transport  of  the 
goods  he  uses  the  immense  English  fleet,  and  so  on. 

Unfortunately,  Russia's  business  people  have  abroad 
in  respect  to  payments  a  very  bad  reputation.  If,  how- 
ever, foreign  providers  w^ere  to  make  distinctions  between 
various  trading  firms  and  factories,  etc.,  in  all  probability 
their  losses  would  be  less.  Most  of  the  insolvencies  in 
Russia  fall  to  trading  concerns,  whilst  insolvencies  in  the 
factories  are  relatively  few,  for  in  Russia  large  concerns 
prevail.  For  example,  in  Russia  there  are  about  1100 
factories  or  works  with  the  workmen  exceeding  500, 
about  2300  between  100  and  500,  and  about  2150  with 
staffs  of  50  to  100.  The  risk  in  giving  credit  to  the  two 
first  categories  of  factories  and  a  considerable  portion  of 
the  third  group  is  very  small,  for  it  is  to  a  very  large 
extent  made  up  of  sound  concerns,  and  partly  of  share 
companies  with  large  capital.  But  if  it  becomes  a  question 
of  town  councils,  large  electric  stations,  and  the  like,  then 
the  risk  of  non-payment  is  excluded  entirely. 

There  is  an  almost  unhmited  demand  in  Russia  for 
almost  all  products  of  the  iron  industry,  and  people  seem 
agreed  that  for  a  very  long  series  of  years  Russia  will  be 
unable  herself  to  cover  her  requirements,  and  will  have  to 
import  a  great  quantity  of  goods  from  abroad.  The 
conditions,  however,  vary  much,  both  as  regards  the 
different  classes  of  goods  and  the  different  parts  of  the 
vast  empire.  Generally,  it  may  be  said  that  the  finer  a 
machine  is,  and  the  more  difficult  it  is  to  produce,  the 
greater  the  chance  of  importing  it  with  advantage  on  to 
the  Russian  market.  On  account  of  the  duty,  heavy  and 
more  simple  articles  are  more  likely  to  prove  unremunera- 
tive,  and  for  some,  especially  such  as  are  produced  within 


240  COMMERCIAL  EUSSIA 

the  country,  the  duty  is  simply  prohibitive,  reaching, 
or  even  exceeding  the  seUing  price  within  Russia  of  the 
article  in  question.  Further,  it  may  be  stated  that  gener- 
ally speaking,  competition  is  keener  in  the  Western 
Governments,  which  are  nearer  Germany,  whilst  the 
chances  improve  the  further  East  one  gets. 

As  regards  cast-iron  articles  for  building  purposes, 
this  is  a  class  of  goods  for  which  a  market  can  only  be 
obtained  in  the  case  of  special  articles,  as  ordinary  cast 
goods  are  manufactured  within  the  country  and  at  cheap 
prices.  Heating  elements  for  central  heating  installations 
are  also  made  in  Russia,  and  the  duty  will,  no  doubt, 
make  it  impossible  for  foreign  makers  to  compete,  unless 
the  elements  can  be  supplied  in  types  principally  made 
of  rough,  not  worked,  castings,  for  which  the  duty  is 
materially  lower.  There  are  many  Russian  firms,  partly 
branches  of  German  concerns,  which  make  heating  plants, 
and  this  industry,  no  doubt,  has  a  great  future,  as  it  is 
only  in  its  infancy,  and  all  large  new  buildings  now  have 
central  heating  installations. 

Internal-combustion  motors  are  certain  of  a  large 
demand  when  constructed  for  using  Russian  unrefined 
petroleum,  especially  in  places  such  as  Moscow,  Rostov, 
Odessa,  Kiev,  etc.,  in  spite  of  there  being  several  Russian 
factories  in  this  branch.  German,  Swedish  and  Swiss 
motors  are  being  used  in  Russia. 

For  wood-working  machines  there  are  several  manu- 
factories in  the  country  ;  still  the  import  is  considerable. 
Machine  tools  are  for  the  present  in  strong  demand,  and 
will  do  doubt  also  meet  with  a  large  sale  after  the  war. 
German  makes  have  a  strong  hold  on  the  market,  and  it 
remains  to  be  seen  how  they  wiU  fare  after  the  war. 

Electrical  apparatus  and  apphances  have  hitherto 
been  almost  exclusively  imported  from  Germany.  The 
articles  under  this  head  are  generally  imported  in  un- 


MACHINERY  241 

assembled  parts,  on  account  of  the  duty.  No  doubt 
other  countries  will  exert  themselves  to  secure  part  of 
this  trade,  and  a  well-known  Scandinavian  factory  in  this 
branch  has  just  had  a  large  Russian  catalogue  printed. 

Of  dynamos  and  electro-motors  several  German  and 
Swedish  factories  have  imported  a  fair  number,  but  large 
quantities  are  made  at  the  Russian  manufactories,  which 
have  been  very  fully  employed  during  the  war.  Light 
motors  run  at  high  speeds  are  those  which  meet  with  the 
readiest  sale.  Telephones  and  telegraph  material  are 
imported  on  a  large  scale  ;  the  Swedish  firms  particu- 
larly enjoy  a  high  reputation. 


XXII 

IRON  AND   COAL:  RUSSIA'S   NATURAL 
RESOURCES 

The  Caucasus — Coal  reserves — Iron  resources — Export  of  iron  ore — Naphtha 

EVERY  known  metal  is  said  to  be  found  in  the  Urals, 
while  all  kinds  of  minerals  are  contained  in  the 
Caucasus  and  the  Altai,  not  to  mention  the  enormous 
quantities,  still  for  the  greater  part  untouched,  in  Siberia 
and  the  Far  East.  Russia  stands  first  in  the  world  pro- 
duction of  platinum,  second  in  the  production  of  petro- 
leum, asbestos  and  manganese  ores,  fifth  in  gold,  seventh 
in  copper  and  asphalt,  and  eighth  in  the  world  produc- 
tion of  iron.  The  iron  ores  of  South  Russia  are  con- 
sidered the  finest  in  the  world,  and  the  gold  ores  of  the 
Urals  supply  a  large  quantity  of  the  wolframite,-  osmium, 
tantalum  and  iridium  used  in  the  manufacture  of  electric 
lamps.  Besides  its  well-known  iron  mines,  the  Ural 
region  contains  copper,  gold,  silver,  platinum  and  salt. 
Its  precious  stones  include  emeralds,  sapphires,  topazes, 
amethysts,  alexandrites,  tourmahnes,  etc.,  and  much  of 
the  malachite  and  lapis-lazuli  worked  up  into  objects  of 
art  come  from  this  district. 

In  the  Caucasus  mining  is  not  so  highly  developed  as 
in  the  Urals,  chiefly  owing  to  the  lack  of  transport  facih- 
ties  and  the  want  of  timber  and  coal.  This  region  is  rich 
in  iron,  molybdenum,  manganese  and  copper,  of  which 
only  the  latter  two  minerals  have  been  worked  to  any 

242 


IRON  AND  COAL  243 

extent.  Since  1907  the  production  of  copper  in  the 
Caucasus  has  fallen  off,  though  there  is  every  evidence 
that  with  skilful  management  and  the  adoption  of  modern 
methods  the  output  will  surpass  its  former  figures.  No 
other  country  in  the  world  has  such  a  wealth  of  manganese 
as  Russia.  There  are  two  great  manganese  districts  : 
one  at  Chaitouri,  in  the  province  of  Kutais,  which  extends 
over  the  whole  central  part  of  the  basin  of  the  River 
Kviril,  in  which  the  richest  mines  are  situated ;  and  the 
other  at  Nikopol,  in  the  province  of  Ekaterinoslav.  The 
richest  deposits  of  this  mineral  cover  an  area  of  over 
fifty  square  miles.  Of  the  93,000  poods  of  lead  produced 
in  1913,  89,000  were  obtained  in  the  Caucasus,  where  the 
most  important  lead  mines  are  found.  The  Tetioukhe 
mines  in  the  Maritime  Province  are  very  rich  in  ore,  which 
is  all  exported.  Before  the  war  Poland  was  the  chief 
centre  of  zinc  smelting,  three-quarters  of  Russia's  output 
being  produced  there,  the  remainder  being  produced  in 
the  Caucasus.  In  1913  10,700  tons  were  produced,  and 
28,800  tons  imported. 

The  neighbourhood  of  Tula  was  originally  the  chief 
seat  of  the  iron  industry,  but  in  1701,  owing  to  the  energy 
and  determination  of  Peter  the  Great,  furnaces  were 
erected  in  the  Ural  district,  which  thenceforward  became 
the  great  centre  of  production.  In  1718  England  pro- 
duced a  relatively  insignificant  quantity  of  iron,  whereas 
Russia  smelted  104,464  tons  of  iron  and  3214  tons  of 
bronze.  Although  undeveloped,  the  iron  ore  deposits  of 
the  Far  East  have  for  years  past  attracted  the  attention 
of  Russian  engineers.  Near  Nikolaievski,  on  the  Amur, 
it  is  calculated  that  the  ore  reserve  amounts  to  200,000,000 
poods,  and  the  proximity  of  the  deposit  to  the  vast  stretch 
of  forest  land  and  to  the  coal  mines  of  Saghahen  ensures 
a  promising  future  for  the  working  of  this  ore.  The 
deposits  of  the  Ussurisk  district  have  also  been  investi- 


244  COMMERCIAL  RUSSIA 

gated ;  those  situated  about  five  miles  from  the  bays  of 
Svyatoiolga  and  Svyatoivladimir  would  certainly  repay 
exploitation,  as  delivery  to  the  harbour  would  not  present 
any  very  great  difficulty,' and  the  necessary  machinery, 
etc.,  could  be  transported  by  sea  and  then  over  the  few 
miles  inland. 

Russia  possesses  investigated  coal  reserves  second  only 
to  the  United  States.  According  to  the  estimate  published 
by  the  International  Geological  Congress,  she  possesses 
in  the  Donetz  basin  more  than  three  times  the  reserves  of 
anthracite  of  Great  Britain  and  nearly  twice  the  amount 
at  the  disposal  of  the  United  States.  In  the  matter  of 
output,  however,  she  ranks  sixth.  This  may,  to  a  large 
extent,  be  attributed  to  the  infancy  of  this  industry. 
In  the  period  1865-1910  Russia's  production  has  in- 
creased from  300,000  tons  to  24,570,000  tons,  or  approxi- 
mately, eighty-fold.  The  corresponding  figures  for  Eng- 
land are  100,000,000  to  264,000,000  tons  respectively, 
showing  just  two-and-a-half  times  increase  only.  Ger- 
many in  this  lapse  of  time  augmented  her  production 
from  28,000,000  to  220,000,000,  or,  roughly,  nine  times. 
The  U.S.A.  in  this  period  increased  her  output  from 
25,000,000  tons  to  440,000,000,  or  approximately  seven- 
teen times.  With  the  application  of  modern  scientific 
methods  to  her  mining  industry  it  seems  fairly  apparent 
that  Russia  should  rapidly  rise  in  the  ranks  of  the.  coal- 
producing  nations. 

In  European  Russia  the  chief  coal  areas  are  the  Dom- 
brova  basin  in  Poland,  the  Moscow  basin,  the  Donetz 
basin,  the  Urals  and  the  Caucasus. 

All  these  basins,  with  the  exception  of  the  first,  form 
the  outcrop  of  a  comprehensive  basin  of  carboniferous 
deposits  laid  down  on  the  vast  expanse  of  Central  and 
Eastern  Russia,  approximately  from  the  Arctic  Ocean  to 
the  Caucasus  in  the  north-south  direction,  and  from  the 


mON  AND  COAL  245 

35th  meridian  to  the  Urals  in  the  west-east  direction. 
The  sediments  of  the  Eussian  basin  belong  for  the  most 
part  to  the  marine  or  mountain  hmestone  type,  composed 
of  massive  deposits  of  Hmestone  in  the  higher  horizons 
with  sandstones  enclosing  seams  of  coal.  These  latter 
strata  attain  their  greatest  thickness  in  the  Donetz  basin, 
which  represents  a  mixture  of  two  types.  In  the  lower 
horizons  the  carboniferous  sediments  of  European  Kussia 
are  represented  by  shallow  water  deposits  as  in  Western 
Europe,  but  higher  up  these  are  mixed  with  deep-sea 
deposits  which  differentiate  the  Russian  basin  from 
Western  Europe,  where  the  higher  strata  are  of  shallow 
or  even  fresh-water  origin.  In  agreement  with  this  the 
fauna  of  the  lower  deposits  is  fairly  similar  to  that  in 
France,  Germany  and  England,  but  that  of  the  upper 
carboniferous,  contemporaneous  with  the  West  European 
productive  measures,  is  pecuhar  to  Russia,  though  a 
certain  analogy  is  offered  with  the  upper  series  of  the 
United  States. 

The  Drombrova  basin  represents  the  continuation  of 
the  Silesian  beds.  Compared  with  the  Donetz  basin  the 
individual  seams  are  much  thicker,  being  over  1  sashen 
(7  ft.),  while  in  the  Donetz  area  they  are  only  2j-3  arshines 
(5  ft.)  thick.  Working  costs  are  also  cheaper,  since  the 
output  per  man  is  19,500  poods,  as  against  12,100  poods 
in  the  Donetz. 

The  Moscow  basin  comprises  the  largest  coal-bearing 
area  in  European  Russia,  having  an  outcrop  of  not  less 
than  30,000  sq.  kilometres.  It  stretches  in  the  form  of 
an  arc  from  the  shores  of  the  White  Sea  through  the 
governments  of  Archangel,  Olonetz  and  Novgorod  to  the 
governments  of  Riazan,  Tver  and  Moscow.  In  spite  of  its 
very  favourable  geological  position,  the  quahty  of  the 
coal  has  not  enabled  the  Moscow  basin  to  hold  its  own 
against  the  superior  coals  of  the  Donetz  basin,  for,  in 


246  COMMEECIAL  RUSSIA 

spite  of  the  transportation  charges,  it  is  found  more 
economical  to  employ  the  southern  coal  or  to  use  petro- 
leum. The  coal  appears  in  two  forms — gas  coal,  with  as 
much  as  77  per  cent,  of  volatiles ;  and  smoky  coal,  with  a 
large  percentage  of  ash  and  moisture. 

Workable  seams  of  coal  are  found  both  on  the  western 
and  eastern  slopes  of  the  Urals.  The  completion  of  the 
Ural  railway  in  1879  provided  a  great  stimulus  to  the  coal 
industry.  The  beds  have  been  much  disturbed  by  post- 
carboniferous  folding  and  lie  in  a  succession  of  synchnes 
and  antichnes.  Towards  the  north  the  coal  is  anthracitic, 
but  in  the  south  coking  coal  predominates. 

In  the  Caucasus  coal  is  found  in  beds  of  Jurassic  and 
Tertiary  ages.  The  workable  coals  in  the  Jurassic  occur 
in  the  middle  division  over  a  large  area,  but  are  difficult 
to  mine  except  in  the  Suchum  Kutais  and  Kuban  dis- 
tricts. The  coal  is  bituminous,  coking,  and  of  good 
quahty. 

The  Donetz  basin  is  the  most  important  coalfield  of 
European  Russia,  regarded  both  from  the  point  of  view  of 
output  and  quaUty  of  coal.  This  field  is  exposed  over 
an  area  of  more  than  19,000  sq.  kilometres.  Overlain 
towards  the  north  and  east  by  more  recent  deposits,  this 
field  has  a  still  greater  concealed  area.  Borings  have 
demonstrated  the  presence  of  coal-bearing  series  in  the 
government  of  Poltava  to  a  depth  of  192  metres. 

In  Asiatic  Russia  the  most  prominent  place  is  taken 
by  the  Kuznetz  basin  in  the  Altai  district,  in  the  presence 
of  which  other  lesser  though  important  basins  are  apt  to 
be  overlooked. 

In  Turkestan  the  mined  coals  are  certaiidy  of  very  poor 
quahty,  but  in  the  mountainous  districts  there  are 
resources  of  coking  coal  and  anthracite  coal  hitherto 
untouched  owing  to  the  initial  technical  difficulties. 

In  the  Western  Plains  region  there  are  enormous  coal- 


IRON  AND  COAL  247 

fields  with  seams  varying  in  thickness  from  one  to  many 
metres  and  in  composition  varying  from  bituminous  coal  to 
anthracite.  In  the  south  of  the  Yeniseisk  Government 
near  the  MongoHan  frontier  at  Minusinsk,  there  is  a  group 
of  three  small  coalfields,  with  a  total  diameter  of  22  miles, 
characterised  by  a  very  regular  stratification  and  a  dip  of 
15  to  20  degrees. 

In  the  neighbourhood  of  Izukh  more  than  twenty  coal 
seams  are  exposed,  having  a  total  outcrop  across  the 
strike  of  about  two  miles.  These  coals  are  high  in  vola- 
fciles,  which  range  from  30  per  cent,  to  40  per  cent. 

In  the  neighbourhood  of  Irkutsk  coals  are  found  of 
Permian  age  extending  120  miles  along  the  R-iver  Angara. 

On  the  banks  of  the  Lower  Tunguska,  in  the  neighbour- 
hood of  Turukhansk,  there  is  another  large  field  which 
has  so  far  been  very  little  investigated.  In  places  the 
coal  has  been  changed  to  graphite  by  the  action  of  in- 
trusive rocks. 

The  most  prominent  field  in  Siberia,  however,  is  that  of 
the  Kuznetz,  which  touches  the  Trans-Siberian  Railway 
at  Sudzhensk.  This  is  consequently  part  of  the  field  that 
has  claimed  more  attention.  It  is  bounded  by  parallels 
56  and  52,  and  stretches  east  and  west  between  the  84th 
and  88th  meridians  east  of  Greenwich. 

The  coal  is  of  good  quality,  and  as  many  as  eleven 
workable  seams  have  been  found,  with  a  thickness  of  up 
to  4  metres.  There  are  altogether  about  forty-five  out- 
crops of  coal  at  present  lying  in  the  basin,  the  series  being 
worked  at  Bachatski  and  Kolchouginsky. 

In  different  parts  of  the  basin  the  coal  varies  in  quality 
from  gas  coal  to  anthracite. 

Since  the  opening  of  the  Trans-Siberian  Railway  the 
output  of  this  field  has  been  rapidly  increasing  and,  since 
the  coal  gives  a  good  metallurgical  coke,  it  should  be 
destined  to  play  an  important  part  in  the  development  of 


248  COMMEECIAL  RUSSIA 

Russian  industries.     There  is  calculated  to  be  a  reserve 
of  12,500,000,000  metric  tons  in  this  region. 

There  are  also  tremendous  reserves  of  brow  coal  and 
friable  coal  which,  with  a  suitable  binding  agent,  could 
be  made  into  excellent  briquettes. 

'  The  first  briquette  factory  in  Russia  was  established 
in  1900,  and  manufactured  small  oval  briquettes,  each 
weighing  about  1  lb.  In  1905  the  second  factory  was 
opened  near  Slavianoserbsk.  Other  factories  have  since 
been  estabhshed  at  Marievka  in  the  Donetz  basin,  with  an 
annual  output  of  3,000,000  poods.  Just  previous  to  the 
war  the  Russia  output  in  patent  fuel  amounted  to  approxi- 
mately 10,000,000  poods. 

Petroleum  residue,  so-called  mazute,  may  play  an  im- 
portant part  as  a  binding  agent  in  briquette  preparation, 
as  it  not  only  acts  in  this  capacity  but  also  considerably 
increases  the  calorific  value  of  the  coal. 

With  increased  and  more  efficient  ways  of  conamunica- 
tion,  both  as  regards  railroads  and  harbours,  with  the 
more  frequent  visits  of  steamers  bunkering  on  the  shores 
of  the  Black  Sea  and  careful  utiUsation  of  by-products,  the 
coal  industries  of  Russia  should  rapidly  forge  ahead  and 
form  a  sound  basis  upon  which  may  be  developed  the  iron, 
steel  and  other  industries. 

"  A  country's  iron  resources,"  says  Russia,  pubhshed 
by  the  well-known  firm  of  R.  Martens  and  Co.,  and  to 
whom  I  am  indebted  for  permission  to  use  much  of  the 
material  in  this  chapter,  "  are  an  index  of  its  potential 
wealth,  just  as  the  production  shows  its  actual  position." 

After  giving  the  early  history  of  the  iron  industry  in 
Russia,  this  article  points  out  that  at  the  end  of  the 
eighteenth  century  the  Government  estabhshed  smelting 
works  with  mineral  fuel  in  South  Russia,  and  in  1879  the 
Lugansky  State  Works  were  founded  here. 

In  the  middle  of  the  nineteenth  century  these  efforts 


IKON  AND  COAL  249 

were  renewed,  and  two  further  State  works  were  con- 
structed—the Kerchatsky  in  1845  and  Petrovsky  in  1868 
— but  these  two  works  did  not  give  successful  results. 
Only  at  the  end  of  the  sixties,  when  this  business  was 
taken  up  by  private  enterprise  by  an  Enghshman — John 
Hughes — ^was  the  South  Russian  metallurgical  industry 
placed  upon  a  satisfactory  basis.  John  Hughes  was  the 
founder  of  the  first  large  iron  rolling  works,  and  the  town 
he  estabhshed  is  still  known  as  Hughesevo  or  more 
commonly  Usevo. 

Under  the  conditions  of  the  construction  of  the  works, 
with  the  yearly  output  of  1|^  million  poods  (there  are 
62  poods  to  the  ton)  of  rails,  John  Hughes  obtained  from 
the  Government  a  large  financial  loan.  Further,  he  was 
granted  concessions  with  regard  to  coal  and  iron  resources, 
and  he  was  also  given  a  royalty  on  the  rails  made  from 
native  iron. 

Almost  simultaneously  with  Hughes'  works,  the  State 
works  at  Lisichansk  were  constructed,  as  well  as  the 
private  Sulinsky  works  of  Pastoukov.  All  these  works 
dealt  with  local  Donetz  ores,  and  in  the  eighth  decade  of 
last  century  there  were  only  the  two  above-mentioned 
private  works,  with  an  annual  production  of  2  and  2^ 
million  poods  of  pig-iron. 

The  discovery  of  the  rich  new  ore  in  Krivoi  Rog  and 
the  connection  by  railway  with  the  Donetz  basin  by  the 
construction  of  the  Ekaterinensky  Railway  in  1886  pro- 
vided a  new  stimulus  to  the  further  development  of  the 
iron  industry  of  Southern  Russia. 

At  this  time  one  of  the  other  important  metallurgical 
undertakings  was  founded  in  Southern  Russia.  In  1 887  the 
Alexandrovsk  Works  of  the  Briansk  Company,  near 
Ekaterinoslav,  were  started,  and  the  South  Russian  Dnie- 
provskoye  metallurgical  works  were  constructed  at  "a 
distance  of  30  versts  from  Ekaterinoslav.     In  1892  the 


250  COMMERCIAL  RUSSIA 

Gdantsevky  smelting  works  at  Krivoi  Rog  made  their 
appearance,  and  in  1895  the  Druzhkovsky  Works  of  the 
Donetz  Company ;  in  the  same  year  the  Russo-Belgian 
Metallurgical  Company  built  its  Petrovsky  works  on  the 
position  of  the  earher  works  of  the  same  name,  and  the 
Donetzko-Yurievskoe  Metallurgical  Company  constructed 
a  factory  near  Yurievka  on  the  Ekaterinoslav  Railway. 

At  the  end  of  the  nineteenth  century  in  South  Russia 
there  were  already  eighteen  furnaces  and  four  smelting 
works,  the  production  of  which  in  1899  reached  82-7 
milhon  poods  of  pig-iron. 

The  enormous  development  of  the  new  iron  under- 
takings depended  to  a  large  extent  upon  the  considerable 
role  played  by  foreign  capital — out  of  the  eighteen  fur- 
naces operating  only  four  were  founded  on  Russian 
capital. 

All  the  above  circumstances  give  the  South  of  Russia 
a  dominating  position  in  the  Imperial  iron  supply,  and 
since  the  second  half  of  the  nineties,  both  as  regards  the 
production  of  ore  and  the  smelting  of  iron,  the  South 
Russian  region  has  held  first  place  in  the  empire. 

The  iron  industry  of  the  Kingdom  of  Poland,  apart 
from  the  continuity  of  its  existence,  did  not  attain  any 
great  significance  up  to  the  middle  of  the  eighties,  and 
the  production  of  iron  did  not  even  reach  3,000,000  poods 
per  annum.  Only  with  the  construction,  in  1885,  of  the 
Ivangorod-Dombrovsky  Railway,  uniting  the  coal  locah- 
ties  with  the  iron  districts,  did  the  production  of  iron  with 
mineral  fuel  begin  to  increase,  and  the  existing  methods 
of  smelting  with  charcoal  gradually  diminished.  In  1894 
the  production  of  iron  had  already  reached  11,000,000 
poods,  and  in  1904  22-8  milhon  poods.  A  more  consider- 
able development  of  production  of  iron  in  the  Kingdom 
of  Poland  is  hindered  by  unsatisfactory  conditions  in  the 
supply  of  raw  material ;  on  the  one  hand,  the  low  content 


lEON  AND  COAL  251 

of  iron  in  the  local  ores,  which  requires  them  to  be  smelted 
with  the  rich  Krivoi  Eog  ores,  and  on  the  other  hand,  the 
absence  in  the  Dombrova  coal  basin  of  coking  coal,  which 
makes  it  necessary  for  the  Polish  furnaces  to  work  exclu- 
sively with  imported  coke. 

The  iron  industry  of  Central  Russia  arose  in  the  seven- 
teenth century,  but  even  up  to  the  present  time  has  not 
attained  a  strong  development.  The  ores  here  consist  of 
Hmonite  and  spherosiderites  with  a  low  content  of  iron, 
and  some  considerable  quantity  of  phosphorus.  In  view 
of  these  difficulties  several  works  employ  imported  Krivoi 
Rog  ore.  As  far  as  concerns  fuel,  the  local  conditions  are 
not  favourable  for  the  development  of  an  extensive  trade 
because  the  coal  of  the  Moscow  Basin  is  not  of  sufficiently 
good  quality,  and  the  forest  in  the  neighbourhood  of 
the  works  has  already  been  considerably  depleted.  On 
account  of  this  several  works  used  Donetz  coal. 

In  the  middle  of  the  eighties  Central  Russia  smelted 
about  3 J  million  poods  of  iron,  and  in  1890  5|  million 
poods.  The  general  increase  in  the  iron  trade  in  the 
nineties  evoked  an  increase  in  production  in  the  Central 
Russian  region,  which  in  1899  reached  the  maximum  pro- 
duction of  pig-iron — namely,  14*854  million  poods.  How- 
ever, a  new  crisis  caused  a  new  decrease  in  smelting 
activity,  which  in  1909  diminished  to  4-2  million  poods. 

As  far  as  regards  the  iron  trade  of  Northern  Russia, 
it  is  only  necessary  to  say  in  this  connection  the  region 
is  one  of  the  oldest  localities  of  the  iron  industry.  Here 
there  are  abundant  deposits  of  iron  ore,  large  reserves  of 
wood  fuel,  and  numerous  lakes  and  rivers  affording  free 
power  and  cheap  means  of  communication.  However, 
the  smelting  industry  has  not  been  of  very  great  signifi- 
cance, and  in  the  last  five  years  has  become  practically 
extinct,  the  production  not  exceeding  a  few  tens  of  thou- 
sands of  poods  per  annum. 


252  COMMEECIAL  RUSSIA 

At  the  beginning  of  the  present  century  in  Central 
Russia  there  were  in  all  forty-six  ironworks,  of  which  only 
ten  were  of  any  great  importance. 

Iron  ore  is  found  in  practically  all  the  regions  of  the 
empire,  though  it  is  only  sufficiently  rich  in  a  few  of  these 
locahties  to  enable  the  working  to  be  carried  out  re- 
muneratively under  present  conditions.  Of  these  the 
following  five  are  the  chief  :  South  Russia,  Ural,  Central 
and  Northern  Russia,  Poland,  and  Caucasus  in  European 
Russia,  and  several  more  or  less  important  locahties  in 
Siberia. 

In  South  Russia  iron  ores  are  found  in  Krivoi  Rog, 
which  occupies  at  the  present  time,  from  the  point  of  view 
of  production,  first  place  in  the  empire. 

They  are  also  found  in  the  Kertch  Peninsula  and  the 
Donetz  Basin. 

The  Krivoi  Rog  ores  consist  of  specular  iron  ores  and 
red  haematite ;  the  Kertch  and  Donetz  deposits  of  brown 
haematite.  In  the  Urals  there  are  all  types  of  iron  ore, 
magnetic,  specular,  spathic  ores,  and  spherosiderite. 
Considerably  richer  in  their  reserves  are  the  Middle  and 
South  Urals.  In  Central  Russia  many  local  occurrences 
have  been  recorded  of  spherosiderite  and  brown  haema- 
tite. In  Poland  also  are  found  deposits  of  brown  haema- 
tite and  spherosiderite.  Northern  Russia  is  rich  in  ores 
of  lake  and  marsh  origin,  and  also  has  deposits  of  magnetic 
and  specular  iron  ores.  The  Caucasus  is  considerably 
poorer  in  respect  of  iron  ores  than  in  the  other  useful 
minerals,  but  here  in  Tiflis  and  Ehsavetpol  governments 
there  are  rich  deposits  of  iron  ore  of  varying  quahty. 
Finally,  deposits  of  iron  ores  are  known  in  Turkestan  and 
Siberia,  but,  thanks  to  their  remoteness  and  lack  of  ways 
of  communication  up  to  the  present  time,  they  have  not 
been  exploited  to  any  considerable  extent. 

According  to  the  estimates  of  the  Director  of  the  Geo- 


IRON  AND  COAL 


253 


logical  Committee,  Prof.  K.  I.  Bogdanovich,  the  reserves 
of  iron  ore  in  the  south  of  European  Russia  consist  of  about 
two  milUard  tons  or  120  milliard  poods,  with  an  iron  con- 
tent of  about  50  milliard  poods.  Numerous  locahties  for 
iron  ore,  the  reserves  of  which  are  not  known  sufficiently 
accurately,  do  not  enter  into  this  estimate,  as  also  the 
locahties  of  lacustrine  and  marsh  ores,  besides  all  the 
iron  ores  of  Siberia.  The  distribution  of  these  reserves, 
according  to  the  district,  is  represented  in  the  following 
table  : 


District 

Ore 

Iron  content 

Million  poods 

Million  poods 

South  Russia 

32,696 

14,237 

Urals             .... 

17,198 

8,277 

Central  Russia 

48,060 

19,215 

Poland           .... 

18,000 

7,320 

Caucasus       .... 

850 

506 

Total      .         .         .    '     . 

116,804 

49,555 

The  approximate  figures  for  the  resources  in  Russia, 
therefore,  reaches  120  milhard  poods,  the  iron  content  of 
which  is  approximately  50  milhard  poods. 

The  figures  for  the  various  kinds  of  ore  are  as  follows  : 


Resources  in  Million  Poods 

Visible 


Possible 


Magnetic  iron 
Specular  iron  ore    . 
Brown  haimatite   spathic  iron  ore 
and  clayey  spherosiderite 

Total   . 


Ore 

Iron 
Content 

Ore 

Iron 
Content 

6,470 
5,572 

40,701 

3,366 
3,409 

16,873 

57 

54,004 

30 

25,877 

52,743 

23,648 

54,061 

25,907 

These  estimates  show  the  enormous  resources  which  are 
at  the  disposal  of  Russia,  and  render  all  the  more  remark- 
able the  slow  rate  of  growth  of  the  iron  industry  as  com- 


254  COMMERCIAL  RUSSIA 

pared  with  that  of  other  countries.  There  can  be  no 
doubt,  however,  that  when  the  resources  are  tapped  in 
earnest,  the  development  of  the  Russian  iron  trade  will 
be  all  the  more  rapid,  since  it  will  be  able  to  adopt  modern 
methods  right  from  the  start.  The  varying  activity  of 
the  production  of  iron  ores  in  the  districts  from  1885  to 
1914  shows  that  in  1885  the  production  of  iron  ore  only 
just  exceeded  60  mill,  poods.  In  the  second  half  of  the 
eighties,  however,  a  rapid  growth  in  the  production  of 
iron  ore  began  with  the  opening  up  of  the  Krivoi  Rog 
district.  The  period  1886-1900  witnessed  an  almost 
unprecedented  growth  in  the  production  of  iron  ore.  In 
the  years  1901-1909  there  was  a  period  of  stagnation  in 
the  iron  industry,  after  which  the  production  of  South 
Russia  again  increased  enormously,  which  was  reflected 
in  a  corresponding,  though  less  marked,  increase  in  the 
output  of  the  other  districts.  The  growth  in  the  produc- 
tion of  South  Russia  was  so  great  that  this  region  not  only 
supplied  its  ores  to  other  iron-producing  districts  in  the 
empire  (Poland  and  Central  Russia),  but  also  began  to 
export  the  crude  ore  abroad  in  fairly  considerable 
quantities. 

This  shows  the  evolution  that  has  taken  place 
in  the  development  of  iron  industry  in  the  last 
half -century.  The  centre  of  this  trade  has  migrated 
from  the  Urals  to  South  Russia,  which  since  1897 
has  occupied  the  dominating  position  in  the  supply 
of  ore. 

At  the  present  time  South  Russia  accounts  for  almost 
72  per  cent,  of  the  total  output  of  iron  ore  in  the  empire. 
The  course  of  its  development  has  already  been  followed 
and  it  offers  a  remarkable  example  of  the  speed  with  which 
an  industry  moves  forward  when  approached  in  a  proper 
manner.  The  ore  was  first  worked  in  the  Donetz  Basin 
near  the  Yusovsky  Works,  but  the  centre  of  the  iron 


lEON  AND  COAL  255 

industry  was  quickly  shifted  to  Krivoi  Eog,  which  at  the 
present  time  occupies  a  unique  position  in  the  output  of 
ore.  Iron  ores  were  also  worked  in  the  Kerch  Peninsula, 
and  at  Korsak-Mogila  in  the  Berdiansk  Ouyezd  of  the 
Ekaterinoslav  government. 

The  Krivoi  Eog  Basin  is  an  ore-bearing  area  of  the 
Ekaterinoslav  and  Kherson  governments,  along  the  Eiver 
Ingulets  and  its  tributaries,  the  Eivers  Saksagan  and 
Zheltaya.  In  this  area  there  is  a  considerable  outcrop  of 
crystalline  rocks  from  the  tertiary  formation  for  a  distance 
of  100  versts,  stretching  in  a  north-westerly  and  south- 
easterly direction,  with  its  greatest  spread  at  Krivoi  Eog 
amounting  to  6  versts.  The  crystaUine  rocks  are  composed 
of  quartzite,  shales  and  iron-bearing  quartzite,  with  veins 
of  ore  partly  lenticular  but  chiefly  of  a  bedded  character. 
The  metamorphic  rocks  occupy  a  depression  on  the  surface 
of  the  granite  gneiss  complex  in  the  form  of  a  folded 
syncline.  In  the  northern  part  of  the  basin  in  the  district 
of  the  Eivers  Zheltaya  and  Saksagan  the  lenticular 
character  of  the  mines  prevails,  and  its  extent  reaches 
several  hundreds  of  sashens  and  its  thickness  40  sashens. 
In  the  southern  part  of  the  basin  the  outcrops  consist  of 
stratified  rocks,  which  is  also  the  case  with  the  strata  of 
the  Chervonny  Valley,  of  Tarapak  and  Likhmanovsky  ; 
here,  however,  the  thickness  of  the  strata  is  considerably 
less  and  generally  does  not  exceed  2-3  sashens.  Accord- 
ingly, the  northern  part  of  the  district  is  usually  worked 
in  open  sections,  whereas  in  the  southern  part  the  ores  are 
extracted  almost  entirely  in  subterranean  workings,  the 
greatest  depth  of  which  in  1913  reached  125  sashens. 
The  Krivoi  Eog  ores  are  red  haematite  and  specular  iron 
ore,  whereas  brown  haematite  is  rather  rare.  The  ore  con- 
tains a  high  percentage  of  iron,  which  sometimes  exceeds 
70  per  cent.,  though  usually  the  ore  contains  60  per  cent, 
to  70  per  cent,  of  iron.    The  ore  with  a  smaller  content^of 


256  COMMEECIAL  RUSSIA 

iron — namely,  55  per  cent,  to  56  per  cent. — is  rejected 
and  is  only  worked  under  certain  circumstances.  The 
general  reserve  of  ore,  according  to  tlie  estimate  of  the 
Government  Commission,  who  calculated  the  figures  in 
1909,  reaches  almost  13  miUiard  poods.  In  the  last  five 
years  new  strata  have  been  exploited,  and  therefore  the 
general  resers^^e  of  ore  in  the  Krivoi  Rog  Basin  may  be 
estimated  at  a  considerably  higher  figure,  so  much  more 
so  as  some  are  many  versts  long. 

The  working  of  the  Krivoi  Rog  iron  ore  began  in  1871, 
and  first  of  all  in  the  southern  part  of  the  basin ;  in  the 
northern  part  the  production  of  ore  began  only  in  the 
nineties.  In  the  first  two  decades  the  production  of 
Krivoi  Rog  ore  proceeded  comparatively  slowly,  and  in 
1892  amounted  to  30*5  million  poods.  In  the  course  of 
the  following  decade,  by  the  construction  of  a  railway 
uniting  Krivoi  Rog  with  the  Donetz  Basin,  the  produc- 
tion increased  almost  3f  times,  reaching  in  1901  111 
million  poods.  In  1911  the  production  of  the  basin  had 
already  reached  288-2  miUion  poods,  and  in  1913  387-8 
miUion  poods.  From  1897  Krivoi  Rog  has  occupied  first 
place  in  Russia  so  far  as  the  production  of  iron  ore  is 
concerned.  At  the  present  time  it  provides  practically 
72  per  cent,  of  the  production  of  the  empire.  In  1913 
there  were  in  the  Krivoi  Rog  Basin  85  mines  belonging 
to  45  undertakings,  of  which  only  49  mines  were  worked. 
The  area  being  mined  belonged  partly  (as  regards  4400 
dessiatines)  to  iron-mining  undertakings,  but  chiefly  (7525 
dessiatines)  were  leased  to  them  by  other  people.  The 
royalty  varied  from  I  kopeck  to  2|  kopecks  per  pood  of 
ore  produced.  The  total  number  of  workmen  in  the  mines 
in  1913  amounted  to  23,595. 

The  Krivoi  Rog  is  generally  divided  into  six  separate 
districts  representing  the  possible  independent  groups 
of  deposits,  which  differ  both  in  the  character  of  the  ore 


IRON  AND  COAL  257 

deposits  and  in  the  nature  of  the  ore  containing  them. 
These  districts  bear  the  following  names  : 

1.  Region  of  River  Zheltaya. 

2.  The  Saksagan  group  of  deposits. 

3.  The  district  of  the  deposits  of  Chervonny  Valley. 

4.  The  deposits  of  Tarapak. 

5.  District  of  Likhmanovsky. 

6.  District  of  the  Ingulets  group. 

There  was  another  group  of  mines  working  the  Kandui- 
bin  deposits,  but  in  1913-1914  these  mines  were  not 
working. 

The  quantity  of  iron  ore  obtained  from  the  Saksagan 
district  gives  slightly  less  than  two-thirds  of  the  total 
production  of  the  basin.  This  is  followed  by  the  Likh- 
manovsky group  of  mines,  the  production  of  which  reaches 
21-8  per  cent,  to  23-3  per  cent.  The  Zheltaya  River  sup- 
plies about  5 J  per  cent.,  Chervonny  Valley  and  Tarapalov- 
sky  ore  about  3  to  4  per  cent,  each,  and  the  remaining 
quantity  is  obtained  from  the  Ingulets  group. 

More  than  90  per  cent,  of  the  total  production  of  the 
Krivoi  Rog  ores  is  extracted  by  companies,  and  the  re- 
maining 10  per  cent,  by  individuals,  while  two-thirds  of 
the  whole  production  of  the  basin  is  obtained  from  lands 
leased  by  private  persons,  and  only  one-third  of  the  ore 
from  lands  belonging  to  the  owners  of  the  mines.  The 
Krivoi  Rog  iron  mines  can  be  divided  into  two  groups — 
mines  which  belong  to  metallurgical  works  (almost  exclu- 
sively South  Russian)  and  others  which  are  independent 
mining  concerns.  About  three-quarters  of  the  whole 
production  of  the  Krivoi  Rog  ore  is  extracted  by  the  first 
group  of  mines,  and  only  one-quarter  by  exclusively 
mining  enterprises.  In  the  first  group,  comprising  twelve 
metallurgical  works,  there  is  a  production  of  287,182,000 
poods  out  of  a  total  of  387,788,000  poods  of  ore  produced 


258 


COMMERCIAL  EUSSIA 


1913 

1909 

1904 

387.8 

217.6 

203.6 

49 

37 

50 

28 

21 

26 

61 

53 

43 

322 

109 

88 

105 

20 

7 

14,259 

8,088 

2,563 

4,819 

1,434 

128 

23,595 

10,544 

8,296 

in  Krivoi  Rog  in  1913,  while  only  100,606,000  poods  were 
obtained  by  special  mining  interests. 

The  following  table  gives  some  idea  of  the  increase  in 
technical  equipment  of  the  Krivoi  Rog  Iron  Mines  for  the 
last  ten  years  : 


Production  of  ore  in  mill,  poods 

Number  of  mines 

Number  of  undertakings 

Total  length  of  light  railways  in  versts 

Total  number  of  engines 

Total  number  of  electric  motors 

Total  power  of  engines  in  h.p. 

Total  power  of  electric  motors  in  kilowatts 

Number  of  workmen 


From  this  table  it  can  be  seen  that  the  total  length  of 
hght  railways  had  increased  in  the  last  ten  years  by 
almost  50  per  cent.,  and  in  1913  amounted  to  61  versts. 
The  number  of  motors  has  been  augmented  almost  four 
times,  while  in  1914  there  were  130  steam-engines  with  a 
total  power  of  7987  h.p.,  39  electrical  machines  with  a 
total  power  of  5891  kilowatts,  139  motors— 2756  kilowatts, 
13  gas  generators  with  a  total  power  of  2985  h.p.  Besides 
these,  there  were  68  steam  and  36  electrical  cars,  210 
steam  boilers — total  heating  steam  surface  of  104,530  sq.ft. 

The  progress  of  the  technical  equipment  in  the  Krivoi 
undertakings  in  the  last  ten  years  has  taken  place  as  the 
direct  consequence  of  the  continued  transition  in  the 
exploitation  of  the  mines  from  open  workings  to  subter- 
ranean (in  1914  there  were  only  five  mines  working  exclu- 
sively in  open  workings),  and  with  the  further  deepening 
of  subterranean  mines,  on  account  of  the  necessity  of 
centrahsation  of  power  in  the  mines,  there  has  been  a 
transition  of  the  employment  of  electrical  energy. 

The  South  Russian  smelting  works  take  up  far  the 
largest  portion  of  the  ore,  while  the  smelting  works  of  the 


IRON  AND  COAL 


259 


rest  of  Russia  take  about  8  per  cent.  For  the  five  years 
1909-1913  the  consumption  of  iron  ore  of  the  South 
Russian  works  has  increased  to  almost  80  per  cent.  Among 
the  metallurgical  works  which  employ  the  Krivoi  Rog  ore 
and  are  situated  outside  Russia  proper,  the  chief  are  the 
works  of  Poland.  A  small  quantity  of  ore  is  also  sent  to 
the  ironworks  of  Central  Russia  (1913-0-7  mill,  poods), 
the  Volga  region  0-5  mill,  poods. 

The  Krivoi  Rog  ore  is  exported  abroad,  chiefly  through 
the  port  of  Nikolaevsk,  and  in  insignificant  quantities 
through  the  western  land  frontiers  ;  thus,  for  example, 
in  1913,  the  total  export  through  the  western  frontier 
was  86,000  poods. 

As  regards  the  destination  of  the  ore  exported  from 
Russia,  by  far  the  largest  portion  was  taken  by  Germany. 
More  than  81-5  per  cent,  was  exported  through  Poland, 
and  this,  together  with  5-7  per  cent,  of  Krivoi  Rog  ore 
imported  direct  into  Germany,  makes  Germany's  total 
consumption  of  Russian  ores  more  than  87  per  cent,  of 
the  total  quantity  exported.  Great  Britain,  on  the  other 
hand,  only  took  12-8  per  cent,  of  this  quantity,  the  re- 
maining States  accounting  for  0-01  per  cent. 


Export  of  Iron  Ore  in  Thousand  Poods 


Countries 


Holland 
Great  Britain 
Germany 
Austria-Hungary 
Other  States   . 

Total      . 


The  ore  deposits  of  the  Kerch  Peninsula  belong  to  the 
Upper  Pontic  stage  of  the  Lower  Pliocene.  The  ores  are 
situated  in  several  syncKnal  folds,  forming  individual 
ore-bearing  froughs. 


1913 

1912 

1911 

1910 

23,363 

3,657 

1,650 

1 

3 

17,376 
4,263 

16,503 

2,090 

254 

26,275 
9,897 

15,858 

737 

1,320 

20,405 

9,578 

21,328 

25 

379 

28,674 

40,486 

54,087 

51,715 

260  COMMERCIAL  RUSSIA 

The  Kerch  district's  production  of  ore  occupies  the 
third  place  in  the  empire.  The  ore  is  bedded  in  character, 
and  is  2  to  5  sashens  thick.  It  is  chiefly  formed  of  brown 
haematite  iron  ore,  with  a  considerable  content  of  man- 
ganese, with  a  percentage  of  iron  of  35  to  45  per  cent., 
manganese  5  to  7  per  cent.,  phosphorus  1|  to  2^  per  cent. 

Only  about  20  per  cent,  of  the  production  is  lumpy, 
the  rest  being  friable  and  requiring  to  be  briquetted  before 
smelting,  or  to  be  mixed  with  Krivoi  Rog  ore  in  the 
quantity  of  about  one-third  of  the  total  mass.  The  ex- 
traction of  the  ore  is  carried  out  in  open  workings,  often 
with  the  help  of  excavators.  The  most  important  locali- 
ties of  the  Kerch  Peninsula  are  Novo-Karantinnoye, 
Baksanskoye,  Ossovinskoye,  Kamuish-Burunskoye  and 
Yanuish-Taldlskoye,  Kuiz-Aulskoye  and  Cherlekskoye. 
All  these  localities  represent  vast  reserves  of  ore,  and 
their  close  proximity  to  the  sea  gives  them  considerable 
advantage  in  respect  to  the  export.  The  only  disadvan- 
tage of  these  locaUties  is  the  comparatively  low  percen- 
tage of  iron  in  the  ore.  A  careful  estimate  of  the  iron  ores 
in  the  Kerch  Peninsula  places  these  at  55  milHards  of 
poods,  although  Prof.  Bogdanovich  allows  only  one-half 
of  these  reserves,  reckoning  the  probable  reserve  of  the 
peninsula  at  27*5  milliards  of  poods.  The  Kerch  ores  were 
first  worked  in  1894,  but  at  the  beginning  of  the  present 
century,  the  Briansk  Co.  worked  their  own  smelting 
works  especially  for  deahng  with  Kerch  ore.  Then  the 
production  of  the  region  rose  in  1901  to  almost  28  miU. 
poods.  Soon,  however  (in  1903),  the  Kerch  Works  were 
closed,  and  the  production  of  ore  was  seriously  curtailed, 
and  in  1907  decreased  to  12*7  mill,  poods.  From  1908 
onwards  the  production  gradually  increased  until  in  1913 
the  figures  reach  29-5  mill,  poods,  which  represents  the 
output  of  two  undertakings  only — namely,  the  Russian 
Providence  Co.,  with  one  mine  at  Kuiz-Auslkoye  and 


IRON  AND  COAL  261 

Cherlekskoye,  and  the  Taganrog,  Metallurgical  Co.,  having 
three  mines,  Ortelsky,  Kerchensky,  and  the  Eltigensky. 
The  Kamuish-Burunskoye  property  is  leased  to  the 
Briansk  Co.,  but  has  not  been  worked.  The  total  area  of 
lands  engaged  in  mining  amounts  to  23,410  dessiatines, 
and  the  royalty  payable  varies  between  J  and  |  kopeck 
per  pood  of  ore  extracted.  Closed  workings  are  very  rare 
in  the  district,  and,  in  fact,  their  area  in  1913  amounted 
only  to  42  dessiatines,  while  their  depth  did  not  exceed 
7  sashens.  In  1914  the  Kerch  Works  of  the  Taganrog 
Metallurgical  Co.  renewed  their  activity,  and  this  circum- 
stance is  responsible  for  the  increase  in  the  output  of  this 
year  over  the  preceding  by  about  14-3  per  cent. 

In  1914  the  consumption  of  Kerch  ore  in  the  Kerch 
Works  increased  by  9,088,000  poods,  while  it  decreased 
somewhat  with  the  works  of  the  Russian  Providence  Co., 
and  still  more  markedly  in  the  case  of  the  Taganrog 
Works.  The  price  of  the  Kerch  ore  at  the  minehead  was 
approximately  5  copecks  per  pood. 

Within  the  confines  of  the  Donetz  Coal  Basin  numerous 
deposits  of  brown  iron  ore,  passing  with  an  increase  of 
depth  into  spathic  ore,  are  met  with.  In  the  western  part 
of  the  basin,  near  Bakhmut-Slavianoserbsk,  they  are 
generally  lenticular  masses,  and  although  they  are  dis- 
tributed over  a  considerable  area,  up  to  half  a  verst,  they 
are  always  limited.  The  most  productive  locaUties  are 
in  the  so-called  Kalmiuso-Toretsk  Basin,  near  the  village 
Mikhilovka.  In  the  eastern  part  of  the  basin  the  locaU- 
ties of  iron  ore  have  a  more  regular  bedded  character. 
They  are  also  met  in  the  Salkosky  Grushevsky  Basins,  and 
also  in  the  stations  Likhi. 

The  percentage  of  iron  in  the  Donetz  ores  does  not 
exceed  35  to  40  per  cent.  In  spite  of  the  favourable  situa- 
tion close  to  the  chief  South  Russian  Metallurgical  Works, 
the  Donetz  Basin  haa  not  been  able  to  compete  with  the 


262  COMMERCIAL  RUSSIA 

much  richer  Krivoi  Rog  ore,  and  whereas  its  consumption 
in  1903  was  8-5  mill,  poods,  in  1913  it  had  decreased  to 
0-279  mill,  poods.  At  Korsak-Mogila,  near  Berdiansk, 
deposits  of  magnetite  and  often  red  haematite  of  high 
quahty  (66  to  67  per  cent,  iron)  are  known.  The  produc- 
tion of  ore  commenced  in  the  second  half  of  the  nineties, 
and  in  1907  sHghtly  exceeded  1-3  mill,  poods.  Recently 
in  this  region  two  sedimentary  deposits  of  a  thickness  of 
6  sashens,  and  estimated  at  20  null,  poods  of  ore,  have 
been  discovered.  The  ore  is  conveyed  by  ropeway  to 
EUzavetovka  station  on  the  Ekaterinoslav  railway,  from 
whence  it  is  despatched  to  the  Yuzovsky  and  Nikopol- 
Mariupolsky  Works.  Thus  the  total  reserves  of  iron  ore 
in  South  Russia,  allowing  86  miU.  tons  for  the  Krivoi 
Rog  Basin  and  450  mill,  tons  for  the  Kerch  Peninsula, 
amounts  to  536  mill,  tons,  with  a  content  of  323,330 
thousand  tons  of  raw  iron. 

With  regard  to  the  position  during  1915  of  the 
South  Russian  Metallurgical  Industry,  it  was  generally 
expected  that,  having  regard  to  the  deficiency  of  raw 
material  due  chiefly  to  the  disorganisation  of  railway 
transport,  the  production  would  be  considerably  lower 
than  in  1914. 

This  idea  has  been  justified,  as  may  be  seen  from  the 
following  figures  for  the  production  in  1915  and  1914  : 


1914 


P«rcentage 
decrease 


1915 

Smelting  of  cast  iron  in  thousands  of 

poods 167,671  1 186,216  10.2 

Manufacture  of  mild  half  products         .  151,575    171,355  11.7 

Manufacture  of  ready  rolled  articles        .  127,967    144,997  11.7 

Fuither  difficulties  were  caused  in  the  metallurgical 
position  by  the  irregular  supply  of  fuel,  ore  and  fluxes. 
This  difficulty  was  increased  by  the  fact  that  the  extractors 
of  calcareous  and  sihceous  fluxes  have  been  called  up. 


IKON  AND  COAL  263 

their  work  not  being  reported  as  of  national  importance. 
In  consequence,  it  can  only  be  expected  that  the  metal- 
lurgical works  will  have  still  further  to  limit  their  produc- 
tion unless  steps  are  taken  to  provide  them  with  the 
necessary  materials. 

The  well-known  oilfields  of  Baku  extend  over  an  area 
of  2700  acres,  and  are  the  chief  source  of  supply.  The  pro- 
duction in  1914  was  556,000,000  poods,  against  500,000,000 
poods  in  1913.  The  output  from  the  oilfields  on  the 
Apsheron  Peninsula,  Sourokhany,  and  Binagady  (in  the 
district  taken  from  the  peasants  by  the  laws  of  1890  and 
1912),  on  Svyatoi  Island,  and  Grozny  and  Maikop,  in  the 
Urals  and  in  Ferghana,  was  estimated  at  189,000,000  poods, 
which  leaves  357,000,000  poods  as  the  contribution  of  the 
old  Baku  petroleum  area. 

In  spite  of  all  this  extraordinary  wealth  of  mineral 
resources  naphtha  is  the  only  mineral  with  which  Russia 
was  able  to  supply  her  needs  in  1912.  She  was  obliged  to 
import  96-3  per  cent,  of  the  lead,  62  per  cent,  of  the  zinc, 
18-6  per  cent,  of  the  copper,  14-2  per  cent,  of  the  coal,  and 
4-2  per  cent,  of  the  salt  required  for  home  consumption. 
The  development  of  copper,  gold,  lead,  and  zinc  in  Russia 
owes  much  to  British  capital  and  enterprise,  50  per  cent, 
of  the  copper  and  over  30  per  cent,  of  the  gold  being  pro- 
duced by  Anglo-Russian  companies.  The  conspicuous 
part  played  by  British  capital  in  the  petroleum  industry 
is  well  known. 


APPENDIX 

BRITISH  AND  RUSSIAN  WEIGHTS  AND  MEASURES 


Commercial  Weights 

1  ton     . 

.     =  62-028012  pood. 

=  62  pood  1  funt  11  solotnik  54-6489 

dolia. 

1  cwt.    . 

.     =     3-101400  pood. 

=     3  pood  4  funt  5  solotnik  36-3324 

dolia. 

1  stone  . 

.     =  15-507700  funt  (pound). 

1  pound  (avoir.) 

.     =     M07643    „ 

=     1  funt  10  solotnik  and  32-0387 

dolia. 

=     1-265877  apothecaries'  pound. 

1  ounce            „ 

.     =     6-645858  solotnik. 

1  drachm 

.     =  39-875151  doHa. 

Troy  Weights 

1  pound  (troy) 

.     =     0-911432  funt. 

=  87  solotnik  and  47-7575  dolia. 

1  ounce      „ 

.     =     7-291456  solotnik. 

1  dwt. 

.     =  34-998989  doHa. 

1  grain 

.     =     1-458291     „ 

Measures  of  Length 

1  mile    . 

.     =        1-508571  verst. 

=     754-285714  sashen. 

=  5280              feet. 

1  furlong 

.     =      94-285714  sashen. 

=     282-857142  arshin. 

=     660              feet. 

1  yard  . 

.     =        0-428571  sashen. 

=        1-285714  arshin. 

=        3              feet. 

2G4 

APPENDIX 


265 


Ipoot 
1  inch 


1  square  mile 


1  acre 


1  square  yard 


.     =        1  foot. 

.     =        1  inch  (duim). 

=  10  hues. 

=        0-571428  vershok. 

Square  Measures 
.     =      2-275787  square  verst. 

=  237-061224  dessiatine. 
.     =  888-979591  square  sashen. 
=      0-370408  dessiatine. 
=       0-183673  square  sashen. 
1-653061       „      arshin. 


foot 
inch 


1  cubic  yard 


foot 
inch 


1  gallon 
1  quart 
1  pint    . 
I'lgiU     . 


1  chaldron 
1  quarter 
1  bushel 
1  peck  , 


=      9 

,5               CbXOiXLll. 

„      feet. 

.     =       1 

„      foot. 

.     =       1 

„      inch  (duim) 

=      0-326530 

„      vershok. 

Cubic  Measures 

.     =    0-078717  cubic  sashen. 

=    2-125364 

„     arshin. 

=  27 

„     feet. 

.     =     1 

„     foot. 

.     =     1 

„     inch. 

=    0-186588 

„     vershok. 

Wet  Measures 

.     =     0-369415  vedro. 

.     =     9-235385  tcharka. 

.     =    4-617692 

J5 

.     =     1-154423 

5J 

Dry  Measures 

.     =     6-233885  chetvert. 

.     =  11-082462  chetverik. 

.     =     1-385307 

3J 

.     =     2-770615  gf 

irnetz. 

RUSSIAN  AND  BRITISH  WEIGHTS  AND  MEASURES 

Commercial  Weights 
1  barkovetz    .         .         .     =     3-224349  cwt. 
1  pud  (pood)  .         .     =     0-322435    „ 

=  36-112716  lbs.  (avoir.). 


266 


COMMERCIAL  RUSSIA 


1  fmit  (pound) 

Hot      . 
1  solotnik 
1  doila  . 

.     =    0-902817  lb.  (avoir.) 
=     1-097174    „    (troy). 
.     =     7-222543  drachms. 
.     =     2-407514 
.     =     0-025078 

Apothecahtes'  Weights 

1  apothecaries'  pound 
1  untzia 
1  drachma 
1  scrupul 
1  gran   . 

.     =  0-789965  lb.  (avoir.). 
.     =  1-053287  ounce  „ 
.     =  2-106575  drachms. 
.     =  0-702192 
.     =  0-035110 

Measures  of  Length 

1  verst  . 

1  sashen=7  feet 

1  arshin 

1  foot    . 

1  inch  (duim) 

1  vershok 

.     =  0-662689  mile. 
.     =  2-333333  yards. 
.     =  0-777777      „ 
.     =  1              foot. 
.     =  1              inch. 
.     =  1-75 

Square  Measures 

1  square  verst 

1       „     sashen 
1      ,,      arshin 
1       „      vershok     . 
1  dessiatine    . 

j  =  281-221288  acres. 
•  i  =       0-439408  square  mile. 
.     =       5-444444      ,,      yards. 
.     =      0-604938      „ 
.     =       3-0625          „      inches. 
.     =      2-69973    acres. 

Cubic  Measures 

1  cubic  sashen 
1     „     arshin 
1     „     vershok 

.     =  12-703703  cubic  yards. 

.     =     0-470507     „ 

.     =     5-359375     „     inches. 

Wet  Measures 

1  botchka 
1  vedro 
1  shtoff 
1  bottle 
1  tcharka 

.     =  108-279186  gallons. 
.     =      2-706980       „ 
.     =       1-082792  quart. 
.     =       1-082792  pint. 
.     =      0-866233  gill. 

Dry  Measures 

1  chetvert 
1  osmina 

.     =  5-774889  imperial  bushels 
.     =  2-887444        „ 

APPENDIX 


267 


1  polyosmina 
1  chetverik 
1  garnetz 


=  1  •443722  imperial  bushels 

=  0-721861 

=  0-360930  peck. 


RUSSIAN  AND  METRIC  WEIGHTS  AND  MEASURES 


Commercial  Weights 

1  berkovetz    . 
1  pood  . 
1 funt (pound) 
1  lot      . 
1  solotnik 

.     =  163-804625  kilogrammes. 

.     =     16-380462 

.     =      0-409512 

.     =     12-797244  grammes. 

.     =      4-265748 

1  dolia  . 

.     =     44-435       milligrammes. 

Apothecaries'  Weights 

1  funt  (pound) 

1  untzia 

1  drachma      . 

.     =     0-358322  kilogramme. 
.     =  29-86022    grammes. 
.     =     3-73253 

1  scrupul 
1  gran   . 

.     =     1-24418 

.     =  62-209       milligrammes. 

Measures  of  Length 

1  verst  . 

.     =     1-066781  kilometres. 

1  sashen 

.     =     2-13356    metres. 

1  arshin 

.     =     0-71119 

1  vershok 

.     =     4-4449      centimetres. 

1  foot    . 

.     =  30-479 

1  inch  (duim) 
1  line     . 

.     =     2-54 

.     =     2-54         millimetres. 

Square  Measures 

1  square  verst 
1      „      foot 

.     =     1-138021  square  kilometres. 
.     =    0-0929          „      metres. 

1      „      sashen 

.         .     =    4-552084      „ 

1      „      arshin 

.     =     0-505787      „ 

1       „      vershok 

.     =  19-7573          „      centimetres 

1      „      inch 

.     =     6-4514 

1  dessiatine    . 

.     =     1-0925      hectares. 

Cubic  Measures. 

1  cubic  sashen 

.     =     9-712132  cubic  metres. 

1      ,,     arshin 

.     =     0-359709     „ 

1      „     foot    . 

.     =     0-028315     „ 

268 


COMMERCIAL  RUSSIA 


1  cubic  vershok 
1     „     inch    . 
1     „     line     . 


1  botchka 

1  vedro 

1  shtoff 

1  bottle  (beer  or  spirits) 

1  bottle  (wine) 

1  tcharka 


.     =  87-819661  cubic  centimetres 

.     =  16-386176     „ 

.     =  16-386176     „     millimetres. 

Wet  Measures 

=     4-919628  hectolitres. 

=  12-299072  litres. 

=     1-229907      „ 

=     0-614954      „ 

=     0-76875 

=     1-229907  decilitres. 


1  chetvert 
1  osmina 
1  polyosmina 
1  chetverik 
1  garnetz 


Dry  Measures 

=  2-099041  hectolitres. 

=  1-049520 

=  5-247604  decaUtres. 

=  2-623802 

=  3-279753  litres. 


METRIC  AND  RUSSIAN  WEIGHTS  AND  MEASURES 


Commercial  Weights 

1  tonne  (1,000  kilogrammes)  =  61-050       pood. 
1  kilogramme  .         .     =     2-441931  funt. 

1  gramme       .         .         .     =     0-23         solotnik. 


1  kilometre     . 
1  metre 


1  centimetre  . 

1  square  kilometre  . 

1  hectare 

1  square  metre 


Measures  of  Length 

.     =  0-9374  verst. 
.     =  0-4687  sashen. 

=  1-406    arshin. 

=  3-281    feet. 
.     =  0-394    inch  (duim). 

Square  Measures 

=  91-533    dessiatines. 

=  0-8788  square  verst. 

.     =  2196-72          „      sashen. 

=  0-9153  dessiatine. 

=  1-98     square  sashen. 

=  10-764        „      feet. 


APPENDIX 


269 


1  cubic  metre  (stere) 


1  hectolitre     . 
1  litre    . 


1  hectolitre     . 


Cubic  Measures 

.     =  2*780  cubic  arshin. 
=  0-103     ,,     sashen. 

Wet  Measures 

.     =  8-130  vedros. 

.     ==1-3     bottles  (for  wine). 

Dry  Measures 

.     =  0-4762  chetvert. 
=  3-811    chetverik. 


NORMAL  RATE  OF  EXCHANGE 

1  £        .         .         .         .     =  Rbl.  9-45. 

1  rbl =  2s.  IJd. 

1  kopeck        .         .         .     =  Jd. 

(Present  rates  are  variable.) 


CONVERSION  OF  VALUES 

At  normal  rate  of  exchange  (£l=rbl.  9-45). 


1  rbl.  per  pood 


1  rbl.  per  funt 

1  rbl.  per  vedro 

1  rbl.  per  sq.  vershok 

1  £  per  ton     . 

Is.  (sh.)  per  cwt. 

Id.  per  lb. 


=  131s.  3d.  per  ton. 
=  6s.  7d.  „  cwt. 
=  0-703d.„   lb. 

=       2s.  4d.        „  lb. 
=  9-35d.    „   gallon. 

=  ll-89d.    „   sq.  foot. 

~  !- 15-23  kopeck  per  pood. 

=     rbl.  1-42      „ 


COMMERCIAL  EQUIVALENTS 

The  following  equivalents  are  generally  used  in  commerce,  in 
calculating  the  stowage  of  goods,  etc.,  based  on  their  average 
weight. 


1 

chetvert 

== 

10 

poods 

wheat. 

1 

}} 

= 

9| 

)> 

linseed 

1 

>5 

= 

9 

55 

rye. 

1 

*} 

= 

6 

5) 

oats. 

270  COmiEECIAL  RUSSIA 

1  kouli  contains  from  8  to  12  chetveriks,  and  its  gross  weight 
(the  tare,  i.e.  reckoned  at  10  lb.) 

=     9      poods  rye. 


=     9          „     meal. 

=  8-8  J      „     buckwheat. 

=     8          „     barley. 

=  6-7        „     oats.* 

II 

1  ton  wheat       =     6    chetverts  = 

=  46  cubic  feet. 

1    „    rye           =7           „         = 

=  49 

jj 

1    „   linseed      =7           „         = 

=  49 

)> 

1    „    oats          =  10-5 

=  65 

>» 

III 

100  chetverts  wheat          =  16-12  tons. 

100        „        linseed         =  15-07 

5) 

100        „        rye               =  14-51 

)) 

100        „        buckwheat  =  13-26 

5> 

100        „        oats             =     9-67 

JJ 

IV 

Poods 

Tons 

Cu.  ft. 

1,000  quarters  oats         =      8,314  = 

134  = 

9,279 

1,000        „        rye          =    12,470  = 

210  = 

9,695 

1,000        „       hnseed    =    12,470  = 

201  = 

11,084 

1,000        „       wheat     =    13,856  = 

223  = 

10,526 

V 

1  ton  wool     =  200  cubic  feet. 

1    „  codilla  =  180 

1    „   rags       =  150 

1    „   hemp    =  130 

1    „    flax       =  120 

1    „   tallow   =     90 

1    ,,   yarns    =  120          „ 

1  bale  crash   =9          „ 

7,000  bricks   =       1  keel    =  21  tons. 

VI 

capacity  1  standard  hundred  is  equivalent  to 

70  rickers  22  feet  long. 

50       „       28 

30       „       35 

20       „       40 

15       „       45 

I 


APPENDIX  271 

vn 

16  French  feet        .  .        .  =    15  English  feet. 

1  standard  hundred  deals        .         .  =  165  cubic  feet. 

1  standard  hundred  redwood  deals  .  =  about  3  tons. 

1  standard  hundred  whitewood  deals  =  about  2J  tons. 

VIII 

1  cubic  fathom  lathwood,  containing 

about  180-200  pieces        .         .  ==  288  cubic  feet. 

6  cubic  fathoms  lathwood        .         .  =     10  standard  hundred. 

50  pieces  of  lathwood       .         .         .  =       1  ton. 

1 10-120  pieces  of  lathwood,  8  feet  long  =       1  standard  hundred. 

1  cubic  fathom  firewood  .         .  =  216  cubic  feet. 

IX 

1  last  =      2  tons  registry. 

1    „     :^  200  cubic  feet. 

1    „     =      5*66  cubic  metres. 
In  stowage  the  following  equivalents  are  reckoned  : — 
1  last  =     120    poods  gross  of  tallow,  Unseed  oil,  potash,  bristles, 

brown  sugar. 
=     120    poods  net  of  iron,  copper,  and  cordage. 
=     100    poods  gross  of  pitch,  tar,  resin,  wax,  soap. 
=     100    poods  net  rye  and  wheat  flour. 
=      88    poods  net  hides. 
=      80    poods  gross  candles,  oakum.  Unseed. 
=      80    poods  net  leaf  tobacco,  wax  in  casks. 
=      60   poods  cotton,  hemp,  flax,  isinglass,  horse  manes 

and  tails. 
=       16    chetverts  oats. 
=       14|  chetverts  Unseed. 
=       13    chetverts  rye. 
=       12    chetverts  wheat. 
=      30    poods  gross  hops. 
=      30    poods  net  down  and  feathers. 
=      60    bales  jufts. 
=     120    ox-hides  and  cow-hides. 
=      70    elk-hides. 
=    400   goat-skins. 
=  3,150    hare-skins. 
=        6    bales  furs. 
=      80    pieces  diaper. 
=      60    sail-cloth. 


272 


COMMERCIAJ.  RUSSIA 


For  the  annexed  tables  (which  have  never  before  been  pubhshed) 
I  am  indebted  to  Mr.  Otto  Sokolovsky,  of  Rostov-on-Don.  They 
will  be  found  useful  in  making  calculations. 

The  table  of  Enghsh  equivalents  of  Russian  weights  and  measures 
is  also  given,  but  the  principal  points  to  remember  are  that  the  pood 
is  equal  to  36  Enghsh  pounds  or  40  Russian  pounds,  the  Russian 
pound  or  funt  being  about  nine-tenths  of  a  lb.  avoirdupois.  The 
arshin  is  the  most  common  term  in  hneal  measure,  and  this  is  28 
inches,  or  seven-ninths  of  a  yard. 

The  metric  system  is,  however,  well  known  in  Russia  and  largely 
used  by  all  the  leading  estabhshments. 

The  coinage  system  is  a  decimal  one,  and  for  all  practical  pur- 
poses is  confined  to  roubles  and  kopecks,  100  kopecks  making  one 
rouble.  The  normal  exchange  before  the  war  was  94-50  roubles  to 
£10  sterling,  but  it  has  since  risen  as  high  as  350. 

Table  showing  the  price  per  Russian  pood  at  one  shilling  per  Ih.^ 
ai  different  rates  of  exchange.  (There  are  36  Enghsh  lbs.  to  the 
pood.) 

Is.  per  lb.  at  exchange    9-00  16-20  roubles. 

9-50  17-10 

10-00  18-00 

10-50  18-90 

11-00  19-80 

11-50  20-70 

12-00  21-60 

12-50  22-50 

13-00  23-40 

13-50  24-30 

14-00  25-20 

14-50  26-10 

15-00  27-00 

15-50  27-90 

16-00  28-80 

16-50  29-70 

17-00  30-60 

17-50  31-50 

18-00  32-40 

18-50  33-30 

19-00  34-20 

19-50  35-10 

20-00  36-00 

20-50  36-90 


APPENDIX 

Is.  per  lb.  at  exchange  21-00    37-80  roubles. 

21-50    38-70        „ 

22-00    39-60 


273 


Illustration. — If  English  price  is  3s.  per  lb.,  and  exchange  is 
14-00  roubles  to  the  £1,  a  Russian  pood  will  cost  3x25-20  =  75 
roubles  and  60  kopecks. 


Table  showing  the  price  per  Russian  pood  at  £1  per  ton  at  different 
rates  of  exchange.  (There  are  62  Russian  poods  to  the  EngHsh 
ton.) 

£1  per  ton  at  exchange    9-00    14-5  kopecks  per  pood. 


9-50    .... 

....      xi-u 

....    15-3 

10-00    .... 

....    16-1 

10-50    .... 

....    16-9 

11-00    .... 

....    17-7 

11-50    .... 

....    18-5 

12-00    .... 

....    19-4 

12-50    .... 

....    20-2 

13-00    .... 

....    21-0 

13-50    .... 

....    21-8 

14-OOj  .... 

. .       22-6 

14-50    .... 

....    23-4 

15-00    .... 

....    24-2 

15-50    .... 

....    25-0 

16-00    .... 

....    25-8 

13-50    .... 

....    26-6 

17-00    .... 

....    27-4 

17-50    .... 

....    28-2 

18-00    .... 

....    29-0 

18-50    .... 

....    29-8 

19-00    .... 

....    30-6 

19-50    .... 

....'  31-4 

20-00    .... 

....    32-2 

20-50    .... 

....    33-0 

21-00    .... 

. .       33-8 

21-50    .... 

....    34-7 

22-00    .... 

....    35-5 

Illustration. — If  EngUsh  price  is  £5  per  ton, 
13-50  roubles,  the  price  per  pood  will  be  5  X  21-8  = 
and  nine  kopecks. 


and  exchange  is 
1-09  =  one  rouble 


274 


COMMERCIAL  RUSSIA 


In  order  to  arrive  at  once  at  the  price  in  English  money  per 
English  lb.,  divide  the  Russian  price  in  roubles  per  1  pood,  equal 
to  36  English  lbs.,  by  the  following  divisors  : — 


If  the  rate  for  £1 


is  roubles  9-00  divide 

by  135 

3J 

9-50 

142J 

J> 

10-00 

150 

}5 

10-50 

157J 

J> 

11-00 

165 

J> 

11-50 

172i 

>> 

12-00 

180 

>> 

12-50 

187i 

J  J 

13-00 

195 

>} 

13-50 

202J 

)} 

14-00 

210 

>» 

14-50 

2171 

JJ 

15-00 

225 

J> 

15-50 

232J 

>> 

16-00 

240 

16-50 

2471 

17-00 

255 

17-50 

2621 

18-00 

270 

18-50 

2771 

19-00 

285 

19-50 

2921 

20-00 

300 

20-50 

3071 

21-00 

315 

21-50 

3221 

22-00 

330 

Illustration. — If  the  price  per  pood  is  36  roubles  and  the  rate  of 
exchange  12  roubles,  then  the  price  per  pood  would  be  36-00  divided 
by  180,  or  20d.  per  lb. 


RUS 

0       8D      »» 

HailKoys  Shan 
Hvghts  ioEn 


m^^ 


"atJ 


tl-- 


Uif^fMr^^ 


'Jm 


ifu" 


AJi 


INDEX 


Abacus,  use  of,  13 

Abo,  138 

Agents,  92  ;  methods  of  employment, 

97 
Agricultural  development,  110,  137, 

161 ;   in  Siberia,  146 
Agriculture  machinery  manufacture, 

168,  174 
Alexandrovsk,  port  of,  117 
Alphabet,  43 

Altai  Moimtains,  145 ;   railway,  153 
America  and  trade  prospects,  8 
Anglo-Russian  Trade  Conmaission,  1 
Anunals,  fur-bearing,  40 
Archangel,  25,  35,  73,  115,  117 
Asbestos,  136 
Astrachan,  55,  122 
Automobile  Club,  Russian,  213 
Azov,  Sea  of,  121 

Bagge,     Mr.     J.     F.,     Vice-Consul, 

Odessa,  2,  65 
;^^<^aku,  25,  33,  39,  67,  122;    oilfields, 

40,  263 
Baltic  provinces,  the,  32,  37,  123 
Bank,  Moscow  Narodny,  107 
Banking  and  finance,  77 
Bashkirs,  57 
Bato\mi,  122 

Black  Sea  shipping,  116,  120 
"  Black-heads  "  of  Riga,  126 
Bokhara,  73 

Boots,  shoes,  and  leather,  207 
British  goods,  openings  for,  161 
Building-trade  requisites,  176 

Cable  industry,  231 

Canada  and  trade  prospects,  8  ;    in 

Siberia,  161 
Carbons  for  arc  lamps,  233 
Carpet  trade,  163 

Caspian  Sea,  the,  35  ;  ports  of,  122 
Catalogues  and  price  lists,  Russian,  9 
Caucasus,     area     of,     32 ;      natural 

resources,  39,  242  ;    mountains  of, 

33,  39  ;   coalfields,  246 
Cement  industry,  166 
Chemical  industry,  166 


^ 


Chemists'  shops,  165 

Cheques,  absence  of,  80 

China-ware,  trade  in,  182 

Clerk,  the  Russian,  13 

Chmate,  36 

Clothing,  trade  in,  177 

Coach,  travelling  by,  25 

Coal,  25,  37,  242 

Coinage  and  decimal  system,  10 

Commercial  war,  the  coming,  14 

Companies,  legal  standing  of  British, 

88 
Company  law,  90 
Cook,  Mr.  Henry,  British  Embassy, 

Petrograd,  2,  62 
Co-operative    movement,     106 ;      in 

Siberia,   108  ;    in  the  Urals,   110  ; 

in  Finland,  113 
Copper  mining,  38,  134,  242 
Cossacks,  36,  58 
Cotton  industry,  40,  189 
Courland,  province  of,  123 
Credit  and  Russian  law,   76 ;     law 

safeguarding  credit,  82 
Crim  Tartars,  57 
Crimea,  the,  36 
Cronstadt,  118 
Cycle  trade,  179 

Dairying  industry,  Siberia,  161 
Decimal  system  of  coinage,  10 
Derbent,  cotton  mills  at,  40 
Dnieper,  the  River,  34 
Dombrova  coal  basin,  Poland,  244 
Don,  the  River,  34 
Don  Cossacks,  58 
Donetz  basin,  coal  and  iron  in  the, 

38,  246 
Dress  of  peasant  class,  63 
Duma,  municipal,  113 
Dvina,  the  River,  35,  117,  127 

East  Finns,  56 
Ekaterinburg,  38,  133 
Ekaterinoslav,  72 
Electrical  equipment,  223 
Engineering  products,  223 
Esthouians,  56 


275 


276 


COMMERCIAL  RUSSIA 


Estland,  province  of,  123 
Exchange  of  rouble,  rate  of,  10 

Fairs,  203 

Finland,  co-operative  movement  in, 
113;  towns,  138;  area  and  in- 
dustries, 139  ;  business  prospects, 
143  ;   trade,  144 

Finns,  East  and  West,  56 

Firebrick  trade,  175 

Flax  industry,  37,  198 

Fleet,  mercantile,  116 

Food  products,  market  for,  164 

Foreign  currency  and  exchange,  10 

Foreigners,  legal  position  of,  87 

Forest  belts,  35  ;  in  Siberia,  152 

Furniture  industry,  172 

Georgian  miUtary  road,  39 
Grerman  language,  ban  on,  42 
Grerman  settlements  in  Russia,  55 
Germany  and  the  import  trade,  7,  93 
Glass  industry,  170 
Gold,  25,  37  ;  in  the  Ural  Mountains, 

38,  242 
Government  control  of  railways,  29 
Government  departments  in   Petro- 

grad,  103 
Grain  elevators,  158 
Great  Russians,  50 

Haberdashery  trade,  177 
Helsingfors,  138 
Hemp  industry,  199 
Hotel  accommodation,  30 
Houses,  52 

Import  trade,  161 

Incandescent  lamps,  233 

Industrial  enterprise  after  the  war,  5 

Irbit  Fair,  205 

Irkutsk,  151 

Iron,    25,    37,    242;     in    the    Ural 

Mountains,  38,  134  ;  ircm  industry, 

239 

Japan's  trade  advantages,  9 
Jewellery  trade,  184 
Jews  in  Russia,  55 
Jute  factories,  200 

Kaftan,  53 
Kalmucks,  56 
Kazan  Tartars,  57 
Kharkov,  59,  72 
Kherson,  66,  121 
Khirghizes,  57 
Kiev,  70 
Kiev  Contract  Fair,  206 


Kokand,  73 

Kolchugino  Railway,  154 

Krasnooufimsky  Government,  133 

Kremlin,  the,  62 

Krivoi  Rog  basin,  iron  industry,  256 

Kulundin  Railway,  154 

Lace  and  embroidery  trade,  185 

Lakes,  Russian,  35 

Language,  42  ;  grammar,  44  ;  foreign 
influences  in,  44 ;  spelling,  45  ; 
dialects,  46  ;   pronunciation,  47 

Lapps,  56 

Law  as  to  Russian  companies,  90 

Law  on  trading,  86 

Leather  trade,  207 

Lena  Railway,  157 

Lena  River,  25 

Letts,  the,  64 

Libau,  118 

Liberty  Loan,  success  of,  11 

Lithuanians,  the,  55 

Little  Russians,  53 

Li  viand,  province  of,  123 

Local  self-government,  103,  113 

Lockhart,  Mr.,  Acting  Consul,  Mos- 
cow, 65 

Lodz,  38,  70,  131 

Macdonell,    Mr.,  Vice-Consul,  Baku, 

2,  67 
Macliinery  trade,   170,  223  ;    textile 

machinery,  191 
Manganese  deposits,  243 
Manufacturing  centres,  37 
Marconi  code,  new,  10 
Markets  for  trade,  promising,  164 
Markets,  town  and  village,  201 
Mercantile  fleet,  116 
Metric  system,  12 
Mineral  deposits,  134,  242 
Mines    and    metalliirgical    works    in 

Urals,  133,  242,  249 
Minusinsk  Railway;  154 
Mongols  in  Russia,  55 
Moscow,  59  ;  most  Russian  city,  62  ; 

Kremlin,  62  ;   shops,  62  ;  business 

importance,  64  ;   hotels  and  clubs, 

64 
Moscow  basin  coalfield,  245 
Moscow  district,   manufactiiring   in, 

38 
Moscow  railway  junction,  29 
Motor-car  industry,  213 
Motoring  routes,  28 
Munnan  Railway,  30 

Name  suihxes,  significanoe  of,  46 
Naphtha  supply,  263 


INDEX 


277 


Natural  resources  of  Russia,  37 
Neva  River,  35 
Nevski  Prospect,  the,  60 
Negroponte,  Mr.,Vice-Consul,  Rostov- 
on-Don,  2 
Niemen,  the  river,  35 
Nijni-Novgorod,  24,  75  ;   fair  at,  203 
Nikolaiev,  66,  121 
Nikolaievsk,  port  of,  118 
Novorossisk,  122 

Obi  River,  25 

Odessa,  65,  120 

Oilfields  at  Baku,  263 

Omsk,  68 

Orel,  74 

Orenburg,  76  ;  Orenburgsky  Grovern- 

ment,  133 
Oufimsky  Government,  133 

Paper   mills,    Finnish,    140 ;     paper 

trade,  163 
Perfimiery  trade,  187 
Perm,  74,  133 
Permiaks,  66 

Petrograd,    59  ;     centre    of    govern- 
ment, 60  ;    shops,  60  ;    hotels  and 

clubs,  61 
Petrograd  as  a  railway  centre,  29 
Petroleum,  263 
Petrovsk,  cotton  mills  at,  40 
Pharmaceutical  preparations,  market 

for,  164 
Photographic  trade,  181 
Physical  features  of  the  country,  33 
Piano  trade,  162 
Plateau,  the  Russian,  33 
Platinum  deposits  in  Urals,  134,  242 
Ploughs  in  use,  149 
Poland,  area  of,  32  ;    iron  industry, 

250 
Poland,  Russian,  37,  131  ;'4Gr«rm€uis 

in,  131 
Poles,  the,  64 
Pood,  equivalent  of,  20 
Population  statistics,  40 
Ports  and  shipping,  115 
Precious  stones  in  Urals,  134,  242 
Preston,    Mr.    T.    H.,    Vice-Consul, 

Ekaterinburg,  2,  134 
Pre-war  travelling  in  Rusaia,  16 
Pronunciation,  difficulties  of,  47 

Railway  system  of  Russia,  17,  28 
Railway  travelling,  17 
Railways,  Government  control  of,  29 
Randrup,  Mr.  S.  K.,  Vice-Consul,  2, 

68 
Razors,  market  for,  163 


Retail  business  in  towns,  202 

Revel,  118 

Riga,  70,  118  ;  history,  123  ;  German 
trade,  124 ;  exports,  127  ;  auto- 
mobile factory  at,  221 

River,  travelling  by,  24 

Rivers  of  Russia,  34 

Roads,  State,  222 

Roadways,  upkeep  of,  26 

Ropemaking,  199 

Rostov-on-Don,  66,  122 

Rouble  and  rate  of  exchange,  10 

Russia,  European  and  Asiatic,  28 

Russian  civiHsation,  sources  of,  43 

Russian  Empire,  size  of,  32 

Russian,  how  to  learn,  46 

Samarkand,  73 

Samovar,  26 

Samoyedes,  66 

Saws,  trade  in,  171 

Schott,  or  abacus,  use  of  the,  13 

Scientific  instruments,  market  for, 
164 

Siberia,  coach  travelling  in,  26  ;  co- 
operative unions  in,  108  ;  area  and 
physical  features,  146 ;  agricul- 
tural development,  146  ;  railways, 
153  ;  Western  Siberia,  146  ;  future 
trade  possibilities,  158  ;  coalfields, 
247 

Siberian  rivers,  25 

Silk  industry,  196 

Slav  origin  of  Russians,  50 

Sleeping-cars  on  trains,  21 

Stationery  and  books,  161 

Steamboat  travel,  24 

Steppep,  36 

Stoves,  trade  in,  183 

Swiss  exports,  237 

Taganrog,  122 

Tammerfors,  Finland,  143 

Tanning  industry,  207 

Tariff,  Russian,  6 

Tartars,  56 

Tashkend,  73 

Telegraph  and  telephone  apparatus, 

232 
Textile  factories,  38 
Textiles  and  textile  machinery,  1S9 
Thrashing  machints,  150 
Tiflis,  73 
Timber,  36,  136 
Tips,  27 
Tobolsk,  133 
Tools,  trade  in,  173 
Town  characteristics,  62 
Towns,  population  of,  40 


278 


COMMERCIAL  RUSSIA 


Traders,  legal  position  of  British,  86  ' 

Trading  methods,  201 

Trains,  railway,  20 

Troika,  26 

Tula,  74 

Tundras  of  northern  Russia,  35 

Turkestan,  73  ;   coalfields,  246 

Tver,  73 

Ugrians,  66 

Ukrainians,  53 

Unions,  Co-operative,  110 

Ural  Mountains,  33,  38,  133 

Urals,  Co-operative  movement  in  the, 

110;    mining  in,   242;    coalfields, 

246 

Viatka,  74 

Viborg,  138 

Vice-Consuls,  British,  2,  69 

Village  life,  52 

Vistiilfi,  the  River,  35 


"  Vitch,"  suffix,  46 
Vladivostok,  115,  118 
Vodka,    abolition    of,    ( 

reaching  results,  78 
Voiskos,  Cossack,  58 
Volga,  the  River,  24,  34 

75 
Vologda,  74 


its    far- 


towns  on. 


Warsaw,  66,  132 

Warsaw  railway  junction,  29 

Wax,  trade  in,  167 

West  Finns,  56 

White  Russians,  50 

White  Sea  shipping,  116 

Woollen  industry,  196 

Yaroslavl,  75 
Yenisei  River,  25 

Zemstvos,  26  ;  their  duties,  103 
Zone  system,  railway,  18 


«™««.m4S^V  USE 

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LD  21 A- 


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YB  0592 


UNIVER3JTY  OF  CALIFORNJA  UBRARY 


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